Finance ministry sees 3 pc GDP contraction in 2020

Hungary’s finance ministry on Tuesday submitted an updated convergence programme to the European Commission that envisages a 3 percent GDP contraction in 2020 in light of the coronavirus crisis.

The programme projects the economy to bounce back and grow by 4.8 percent next year, the ministry said in a statement. Economic growth is seen exceeding 4 percent between 2022 and 2024.

The document puts this year’s budget deficit at 3.8 percent.

The public debt-to-GDP ratio is projected to rise this year, before falling again from 2021, to below 60 percent by 2024.

Hungary’s economic policy remains committed to the improvement of the country’s competitiveness, continued tax cuts and fiscal discipline, the ministry said. Because the economy was in good enough shape when the virus made its way to Hungary, the government’s economy protection measures are expected to be effective in restarting the economy, it added.