European Commission significantly ups Hungarian growth forecast to 5.2 percent

Hungarian economic growth expected to be double that of the eurozone in 2022

editor: REMIX NEWS
author: Magyar Hírlap
General Motors powertrain plant in Szentgotthárd, Hungary.

Economic growth in Hungary is expected to exceed 5 percent this year, a revised figure from the 3.6 initially estimated in official forecasts published by the European Commission.

The EU executive has improved its forecast for the performance of the Hungarian economy, revising the figure of 3.6 percent to 5.2 percent, the Hungarian Finance Minister Mihály Varga wrote in a post shared on his social media channels on Sunday.

The Summer 2022 Economic Forecast published by the European Commission also shows that the Hungarian economy is expected to grow twice as fast as the EU average, with the eurozone expected to increase by approximately 2.6 percent.

According to Varga, most forecasts, however, also warn that the war and the failed sanctions will soon push Europe’s economy into recession.

“Inflation (in the eurozone) is projected to peak at 8.4 percent year-on-year in the third quarter of 2022 in the euro area and from there decline steadily and fall below 3 percent in the last quarter of 2023, in both the euro area and the EU, as the pressures from supply constraints and commodity prices fade,” the forecast said.

“The goals are clear: The Hungarian economy must stand its ground even in the deteriorating environment, stability must be preserved, jobs must be protected, and the country’s energy supply must be ensured,” Hungary’s finance minister wrote.

“We are working to ensure that the budget provides the necessary resources in full, in addition to reducing the state debt and the deficit,” Varga added.

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