Hungary could soon be among the most advanced EU member states

The Hungarian economy keeps catching up for now, even through recent difficulties, reports VilágGazdaság. If the country’s development continues Hungary will stand out in the global recession, as the Prime Minister said in his speech in Tusnádfürdő.

Viktor Orbán said “Hungary must be a local exception in a global recession”, but in that speech, he did not explain what he meant by that exactly. The Minister of Economic Development, Márton Nagy cleared that Hungary could achieve excellent results by keeping the 2 percentage point growth advantage. The growth surplus of the country has well exceeded 2 percentage points, according to available data, said Gergely Suppan, lead analyst of Magyar Bank Holding.

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After ranking ahead of Portugal, there is a chance for Hungary to take a step toward the most developed countries of the European Union. But it is important to note that with the current economic crisis developments will probably slow down. The process of catching up to the more developed countries might bring about a smaller decline than the EU average.

Hungary stands out in the region

The country’s economic growth stayed strong in the first half of 2022. Hungarian production grew by 7.3 percent while the average production in the European Union stayed under 5 percent. This shows that the country is catching up to the most developed states. The ranking of the GDP will probably not change, the gross domestic product based on purchasing power parity may rise from 76 percent to 78 percent of the EU average in 2022.

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Even in the region, this growth is outstanding – for example, Slovakia’s GDP grew by 2.4 percent and the Czech Republic’s by 4.2 percent in the same period. Gergely Suppan also highlighted that while in the neighbouring countries the inflation-triggered issues could be already felt at the beginning of the year, in Hungary the statistical office measured real wage growth.

Just like at the beginning of the COVID-19 pandemic, the outcome of the current energy- and economic crisis is unclear. There are many factors that affect economies and their growth such as the possible energy shortage and fluctuating energy prices.

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Source: VilágGazdaság