Hungary advocates neutrality in trade policy, says minister

Hungary advocates neutrality in trade policy and is opposed to the creation of economic blocs, National Economy Minister Márton Nagy said at an event marking the European Day of Commerce on Wednesday.

Nagy said reducing division was the way forward and criticised a European Union decision to levy protective tariffs on Chinese EVs. He added that an “economic cold war” would harm the Hungarian economy and pressed for cooperation between capital from the East and the West.

Addressing the retail sector, Nagy said domestic ownership and inventories of local products should be raised to levels in countries in Western Europe.

He brushed off criticism by some market players of government measures affecting the sector and said price caps and mandatory discounts at supermarkets had been necessary to bring down inflation. He added that it was the job of retail chains to more efficiently serve consumer needs.

He said the government was closely watching developments affecting inflation.

Retail sales are on the rise, especially sales of food, and the favourable trends are expected to continue in the coming months, he said. He added that changing consumer habits could be a bigger problem for retailers than consumer confidence, noting a younger generation of consumers who grew up with the internet.

He said the National Commerce and Consumer Protection Authority (NKFH) would start operating in January, taking a roll that would support commerce policy as well as covering consumer protection tasks. The authority will also take over some activities, such as food laboratory tests, from food safety authority Nebih, he added.

László Krisán, the head of business association VOSZ, said Hungary’s commerce sector accounted for close to 12pc of GDP, over the EU average. He augured positive developments as consumer caution eased and said brick-and-mortar businesses were around to stay.

Read also:

• Good news from the Hungarian economy: National Bank prepared to protect the Forint, inflation likely to fall – read more HERE