Hungary's Economy Set For Swift Recovery, Says Finance Minister

  • 3 Apr 2021 8:48 AM
  • Hungary Matters
Hungary's Economy Set For Swift Recovery, Says Finance Minister
Hungary’s economy is set to stage a swift recovery from the second quarter and achieve growth of 4-5% for the full year, Minister of Finance Mihály Varga said in an interview with Wednesday’s business daily Világgazdaság.

Budget amendments to be submitted to lawmakers on May 4 target a declining deficit, Varga said, adding that a shortfall of 7.5% and public debt level of below 80% of GDP was likely by year-end. Public debt in the European Union averaged 100% last year, he noted.

Varga said it was important that the debt level should not rise this year and resources should be provided for government measures to combat coronavirus and restart the economy while reducing debt levels simultaneously.

He said investors were looking out for when and how fiscal policy would return to normal as the pandemic subsides.

Varga noted that Hungary’s vaccination drive is well ahead of the rest of Europe and the economy was ready for relaunch. A return to growth would happen “surprisingly fast”, he said.

The second half of the year will see robust growth data, he said, adding that current calculations indicate full-year growth of 4-5%.

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