Government believes Hungary’s economy will grow significantly in 2024

Hungary’s economy is expected to return to growth of around 4 percent next year, Mihály Varga, the finance minister, said on Saturday.

Attending an event in Slovakia, Varga also highlighted challenges for central Europe such as deteriorating European competitiveness and sanctions related to the war in Ukraine, a finance ministry statement said. He noted that in 2021, after the pandemic, Hungary produced growth of 7.1 percent, while it notched up 4.6 percent last year, above the EU average. “Whereas this year won’t be easy, and we’ll do well to escape recession”, 4 percent growth can be expected in 2024, he said.

In a panel discussion with his Slovakian counterpart, Mihály Horváth, he said recession would be bypassed in Hungary by preserving jobs and low labour taxes while attracting new investments to Hungary. Varga said the investment rate in Hungary was high, at 28 percent of GDP, “the highest rate in the EU”, promising good prospects for the upcoming period. FDI, he added, was also at a high level.

Varga also emphasised the importance of returning to pre-pandemic budget deficit levels and reducing the public debt. He said the budget shortfall would drop to 2.9 percent and the budget overall gave the foundation for predictable planning and sustainable growth.

Featured image: Finance Minister Mihály Varga