Romania catches up with Hungary in GDP per capita

According to Eurostat’s preliminary data, Hungary’s GDP per capita is eighth from the bottom of the ranking of Member States. It has caught up with Portugal in 2022, but its lead over Romania has vanished.

Hungary’s GDP per capita in 2022 was 77 percent of the EU average at purchasing power parity (PPP), according to a preliminary release by Eurostat, hvg.hu reports. This brings Hungary closer to the EU average, as this figure was only 75 percent in 2021. Hungary has now caught up with Portugal (75.1 percent in 2021, 77 percent in 2022).

So did Romania: in 2021, the country’s GDP per capita was 74.1 percent of the EU average. In 2022, it rose to 77 percent.

This puts Romania, Portugal and Hungary in the 8th place from behind.

Source: Eurostat

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Budget deficit at HUF 1,525 billion in February, ministry confirms

Hungary’s cash flow-based budget balance finished February with a HUF 1,525.1 billion (EUR 3.9 billion) deficit, the finance ministry confirmed in a second reading of data on Thursday. The deficit widened from HUF 143.6 billion at the end of January. The central budget deficit was HUF 1,532.6 billion at the end of February and the social security funds were 50.6 billion in the red. Separate state funds had a 58.1 billion surplus.

The ministry acknowledged that the prolonged war and the energy crisis caused by sanctions have “radically changed the economic circumstances” but reiterated the government’s aim to protect families, pensioners, the economy and workplaces, as well as the country’s security “in dangerous times, too”.

“The budget fully ensures the resources necessary for the country’s operation and maintaining [regulated household utilities prices] up to average consumption,” it added. The ministry noted that pension expenditures were up by HUF 274.8 billion from the base period, boosted by top-ups. “Like last year, the government will reduce the budget deficit and state debt [relative to GDP] this year, too,” the ministry said.

The ministry confirmed the 2023 budget deficit target at 3.9 percent of GDP and said surplus revenue generated by GDP growth over the 1.5 percent target will be used to reduce the fiscal gap. Amendments to the 2023 budget act the government submitted to lawmakers in January would put the full-year deficit target at HUF 3,400.2 billion.  The deficit reached HUF 4,753.4 billion in 2022.

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Source: Telex.hu, MTI