Mihály Varga told the American Chamber business forum in Budapest that growing employment, the expansion of export markets, the reduction of administrative burdens and the suppression of black economic activity were also factors which would contribute to future growth.

Varga noted that rating agencies had bumped up the country’s ratings and economy’s outlook to “positive” for the first time since 2011. He said the markets never doubted the Hungarian economy but it was important to convince agencies that Hungary was on the right track.

“Sceptics say EU funds are the only reason for Hungary’s growth, but if that were so 14-15 other European economies should also be growing, which is not the case,” he said. Fiscal and monetary responsibility are the foundations for Hungary’s growth, he said, adding that these foundations are stable. However, Hungary must expand its export markets by involving new industries in export activities.

Noting the automotive industry as an example, he warned that the economy would become vulnerable if Hungary based its entire export strategy on a single industry.

The US has been Hungary’s largest non-EU export partner and the largest non-EU investor in Hungary over the past four years. In 2014, the volume of bilateral trade soared by more than 10 percent and reached almost USD 6bn, while the volume growth of Hungarian exports exceeded 20 percent in 2014. Overall FDI by US enterprises has totalled USD 9bn this year. The 1750 US companies active in Hungary employ almost 90 thousand people in the country.

MTI photo: Noémi Bruzák

Source: hungarytoday.hu

Republished with permission