Hungarian government: we will avoid recession in 2023!

The Hungarian government is determined to avoid a recession this year, and its goal is to secure growth of 1.5 percent this year following 4.5 percent growth in 2022, notwithstanding the mounting economic challenges, Márton Nagy, the minister of economic development said on Tuesday, opening business lunch of the Hungarian-French Chamber of Commerce and Industry.

Márton Nagy also said that inflation and the twin deficits must be handled, and for this the government’s economic policy must always be innovative. Inflation is expected to fall to the single digits by year-end, he said, adding that the public budget deficit would ease to around 70 percent of GDP.

Among the economic challenges, Nagy noted the European energy crisis and the bloc’s falling competitiveness, the re-ignition of China’s economy, and an impending US-EU trade war. Bearing in mind Hungary’s export- and investment-driven economy, new financing structures and fresh energy, industry, and employment policies are needed, he said.