Hungary needs to grow wages to boost economic rebound

Thanks to effective government measures, inflation will fall into single digits by year-end and to 5-6 percent in 2024, the economic development minister told VKF, a forum of employers, unions and the government, in Budapest on Thursday.

Economic growth is estimated to be around 0 percent this year, and is expected to return to 4 percent or more next year, the ministry cited Márton Nagy as saying.

The purchasing power of wages is estimated to have grown in the second part of the year, and will probably return to a 4-5 percent growth rate in coming years, he said.

To boost that trend, the government is backing VKF’s majority stance that minimum wages should grow by 15 percent as early as December. The minimum wage of degree holders should grow by 10 percent, he added. A new multi-year wage agreement could be drafted in early 2024, he said.

Source: MTI