Hungary’s finance minister optimistic about economic growth – here are the numbers

Hungary’s economy could grow by 1.8-2.2 percent this year and 3.5 percent could be achieved “by all means” next year, the finance minister said on Wednesday.

Hungary’s economic growth third highest

Mihály Varga told commercial channel M2 that it was “good news” that in a European comparison, Hungary’s second quarter growth figures were the third highest behind Portugal and Spain.

The Russian-Ukraine war continues to weigh on European economies, with competitiveness problems and high energy prices also having an effect, he said. Germany’s struggle with its own challenges and a crisis has also dragged Hungary down, Varga said. He expressed hope that the next half year would see Germany returning to economic growth, which in turn could boost Europe.

He said he was optimistic about the future, with all international forecasts showing significant growth in the Hungarian economy. The economy will expand in the second half, but developments in the US will be decisive, he added.

2025 will see an even higher growth

Varga said that 3.5 percent economic growth was feasable by all means for 2025, with 1.8-2.2 percent being a realistic projection for this year. An uninterrupted inrease in real wages for the past 9 months and expanding consumption also support growth, he said.

Hungary received investment grade rating from rate setters in May-June, and the government measures of June will help maintain the positive ratings in the autumn, he said.

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