Government could launch stimulus package in autumn

Budapest, June 12 (MTI) – Hungary’s government will stand by its growth target for this year and could prepare an economic stimulus package in the autumn, Economy Minister Mihály Varga said in an interview published in daily Magyar Hírlap on Saturday.

The 2.5 percent GDP growth target in this year’s budget is achievable, but growth has to be strengthened, Varga told the paper. The capability Hungary has to grow its economy must be strengthened, competitiveness must be improved and structural changes must contribute to this, he said.

There are significant reserves in the labour sector and some other sectors, such as green economy, healthcare, specialised machinery and tourism, have the potential for stronger growth, Varga said. Growth could also be accelerated among SMEs and in some areas of industrial development, Varga added.

He also mentioned fiscal tools to support capital markets and said the government has prepared a proposal it is negotiating to boost the market capitalisation of the Budapest Stock Exchange and raise the number of issuers on the bourse.

Varga said the government’s 2017 budget bill involved compromises but “keeps things in proportion”. The 2.4 percent-of-GDP deficit target does not mean the government has drafted an election budget, he added.

Source: http://mtva.hu/hu/hungary-matters