National economy minister: Hungary’s growth hindered by external factors, especially automotive decline

External economic factors, mainly the downturn in Germany’s automotive industry, are weighing on Hungary’s economic performance, National Economy Minister Márton Nagy said at an event organised by economy portal Világgazdaság in Budapest on Thursday.

Nagy noted that domestic consumption was recovering after the impact of last year’s high inflation, and sectors dependent on local demand were performing well. He said GDP growth could climb to around 3pc with a pickup in consumption, but an increase in investments would also be needed in the long term. He added that investments were down in export-oriented sectors.

Read also:

• No stopping: Hungarian forint hits another record low after weak GDP report
• Forint in uncontrolled decline, crossing multiple lows: when will it stop?