The driver of growth in the next few years will be consumption, services and agriculture, she said. An uptick in industry will be helped by new models coming on line in Hungarian car plants, which are again expected to reach full capacity.

Meanwhile, construction will get a boost thanks to government measures to pep up the housing market, she added.

As more EU money comes on tap, economic development projects will also lift the position of small and medium-sized firms, Hornung said. Taking all these factors into account, the ministry’s forecast published earlier in December suggests that GDP will grow by 4.1 percent next year and by 4.3 percent in 2018, she said.

At the same time, a potential hindrance to growth over the coming few years could be a skills shortage, so efforts must be made to secure in Hungary an appropriately trained workforce and a high level of productivity, coupled with decent wages, the state secretary said, noting the six-year wage deal struck in November.

Republished with permission of Hungary Matters, MTI’s daily newsletter.