Hungarian inland tourism broke record, economy showing signs of strong growth!

In July, inland tourism in Hungary broke a record again, showing that Hungarians are again in the mood to travel. Strong growth is returning to Hungary, according to a country report released by the OECD on Friday. Speaking at an online press conference presenting the Economic Survey of Hungary 2021, Alvaro Pereira, the OECD’s director of country studies, said Hungary was showing signs of strong economic growth despite the economy having taken a hit from the pandemic.

In the history of modern Hungarian tourism, the highest number of inland tourists meaning 150 thousand guests were in hotels on July 24. Based on the CEO of the Hungarian Tourism Agency, Zoltán Guller, Hungarians have spent 103 billion HUF (EUR 287.4 million) in the tourism sector.

This spring, inflation in Hungary surpassed the 3 percent target and inflation pressure remains high,

he said. The country’s aging population is leading to a shrinking workforce, and in turn, rising pension expenditures, he added.

Though Hungary’s

unemployment rate increased in 2020, its rise was still below the European Union average,

Pereira said. Wage growth is expected to remain stable in 2021, he said, adding that it should be accompanied by productivity growth.

Employment in Hungary’s poorer eastern and south-western regions is significantly lower than in other parts of the country and overall regional differences in the country are high, he said.

Taxes on labour remain high compared with the EU and OECD averages,

Pereira said, adding that the low centrally regulated prices of energy, water, wastewater and waste collection services do not incentivise investments in this area.

Pereira said the adoption of advanced information and communication technology (social media, cloud computing, high-speed internet, big data analysis) was low and mobile internet prices were too high compared with the OECD average.