The Euro could come to Hungary in 2024

Hungary may meet the Maastricht criteria for adopting the euro by the end of 2024, the head of the Fiscal Council said on Thursday.

Whereas inflation was 25.4 percent in February, it could drop to around 3 percent by summer 2024, Árpád Kovács told the assembly of the Fejer County Chamber of Commerce and Industry in Székesfehérvár, in central Hungary. Public debt relative to GDP will fall well below 70 percent by the end of next year, and the budget deficit is expected to be around 2.9 percent, he added.

GDP growth is projected to be around 1 percent this year, before rising to 3.5-4 percent in 2024, Kovács said. Inflation will fall below 10 percent by the end of this year, and forecasts indicate a significantly better inflationary environment next year, he added.

Hungary ranks at the top of the bottom third of European Union countries in terms of GDP per capita, ahead of Portugal and Slovakia, among others, and could move into the midfield by 2029, Kovács said.

Hungary’s nominal GDP has been growing since 2020, and not just because of inflation and a rise in output, he said, adding that GDP was set to reach HUF 78,000 billion (EUR 207.8bn) this year.

Source: MTI

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5 Comments

Cigány ország says:

04/05/2023 at 21:19

“prophecy has been taken from prophets and given to fools and children.” Árpád Kovács knows what will be the numbers a year from now….maybe he can give me the winning lottery numbers for next week’s draw.
Géza Hegedűs says:

05/05/2023 at 00:02

The Euro is a political tool of Brussels. It will take more sovereignty from Hungary. Excepting, the euro would be a big mistake for many reasons.
Michael Steiner says:

05/05/2023 at 08:41

Big mistake. Ask the Croats who did it at the start of 2023. The businesses jacked up the prices by using an unfavorable (to the consumers) exchange rate and then oh-so “conveniently” rounding up the amounts. The euro is a Franco-German invention as a means of control. Stay away.
Norbert says:

05/05/2023 at 09:56

A bit of history – https://european-union.europa.eu/institutions-law-budget/euro/history-and-purpose_en

So – we only joined in 2004, right … Since 1999, all new EU members are obliged to commit in principle to joining the euro once they meet certain criteria. Unless you opted out (Denmark, the UK had one). We didn’t. Club rules.

Lastly – borrowing cost – please consider the 10 year government bond yields – https://www.tradingview.com/markets/bonds/prices-all-10-year/ . Let’s have the numbers do the talking – check ours versus Euro. Basta.

Lastly, I do miss travelling through Europe with 5 wallets so I could pay, appropriately, in each of the various jurisdictions.
Renault says:

05/05/2023 at 10:05

Prices in France also rose when the euro was introduced. We were not happy about this but we had to deal with this.
Not the end of the world.
@Michael, are you happy that shops in Hungary jacked up because of inflation?