Finance Minister explains why the Hungarian economy is strong
Hungary’s financing needs can be met next year and the budget is on a stable footing, Mihály Varga, the finance minister, told a press conference on Monday.
Even amidst the poor international environment, the government will be able to continue cutting the budget deficit and the public debt, the minister said, adding that the former will be reduced to 3.5 percent in 2023 after 4.9 percent forecast for this year, while the public debt will fall from 76.8 percent at end-2021 to 74 percent by the end of this year.
Varga said the 2023 budget will be redrafted by the end of the month — though sticking to the same deficit target — to take into consideration “a different economic path” ahead which envisages bypassing a recession and achieving growth of 1.5 percent. This would come after expected growth of 4.5-5.0 percent this year.
He said energy costs had added 4,000 billion forints to the public finances.
At the same time, he said there was record employment and a jobless rate which is among the lowest in the European Union. Growth, he added, was still above the EU average and Hungary’s tax system was internationally highly competitive. Investments, he said, were robust and the balance indices have improved thanks to government action taken during the year.
Read alsoMinimum wage in Hungary to reach EUR 573 next year
The minister said that whereas 10 years ago, more than half of Hungary’s debt was FX, today this has been lowered to 25 percent. Meanwhile, the level of foreign ownership in the country’s businesses has fallen from 75 percent to 50 percent, he added.
Whereas the amount of state bonds in the hands of Hungarians has fallen somewhat this year, domestic financing of the national debt is still the highest in Europe, at 20 percent, Varga said.
Regarding plans ahead, the minister said a series of foreign currency bond issues worth 4 billion dollars are planned for next year together with refinancing of foreign currency bonds worth 1 billion dollars.
EU recovery funds are also expected to underpin Hungary’s public financing, Varga added.
We’re great! If the EU doesn’t send us enough cash, we’ll just borrow: “The Hungary Government Bond 10Y is expected to trade at 8.88 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 9.79 in 12 months time”.
https://tradingeconomics.com/hungary/government-bond-yield
P.S. – we are leading the EU when it comes to 10 year bond rates. In Greater Europe – just Turkey and Russia ahead of Hungary!
The Debt of this Orban Government is ASTOUNDING.
This just continues to compound the PROBLEMS mounting relating to the “weakness” trending downwards of the Economic & Financial picture in Hungary, that Orbans debt – his possible Major Legacy he leaves the tax payers of Hungary, is growing.
The propaganda machine has been “cranked up” from the Fidesz led Government of Hungary, that AGAIN is not of Fact & Truth, filling the heads of millions Hungarians of a situation in our country that is REMOVED of Truth.
Hungary – we are distanced from living in the Mess & Shambles – created by Victor Orban and its bottom – SCARY.
Nothing in Hungary is going to get cheaper and blacker days are ahead FACTUALLY for millions of Hungarians.
If you believe any of this official bull talk on the economy, I have a bridge for sale in Brooklyn I just know you will love.
“Average wages in the EU were more than EUR 30,000 last year, according to a new Eurostat indicator. Hungary is ahead of only Bulgaria in the ranking. This means that the country is the second worst performing EU member in this regard.”
Source: dailynewshungary.com https://dailynewshungary.com/awkward-only-bulgarians-earn-less-than-hungarians-in-the-eu/