Tuesday , May 17 2022

Varga: In 2018, the economy could grow by 4.3 to 4.5%


According to data from seasonally adjusted and calendar data, GDP grew by 5% in K3, and the government expects the pace of expansion of the Hungarian economy in the fourth quarter to exceed 4%, and 4.3% in the fourth quarter of 2018, 5%, the minister said on Wednesday finance of Mihali Varga on the current channel M1, which corresponds to the latest data of the Central Bureau of Statistics (KSH).

According to the Central Bureau of Statistics of Hungary, the gross domestic product (GDP) in Hungary in the third quarter of this year increased by 5.0% compared to the same period of the previous year, according to raw data of 4.8%, adjusted for seasonally adjusted and calendar effects .

The Hungarian minister stressed that the Hungarian economy is on a steady pace, as evidenced by the fact that the growth of GDP in the European Union was preceded by the Irish economy in the third quarter and that Hungary was ranked in the regional comparison.

Mihali Varga reminded that the European Commission and the International Monetary Fund (IMF) in the past have changed the forecast of the growth rate of the Hungarian economy. This is the result of two factors, on the one hand, the effect of the six-year agreement on pay-to-consumption, the stimulating effect of internal demand, and the fact that products and services produced in Hungary can be found abroad, or exports are rising.

On movements in foreign trade, the performance of Hungarian exports exceeded 100 billion euros last year, but data show that it will be even more profitable in 2018.

According to a statement by the Ministry of Finance (MTI) on Wednesday, the Hungarian economy shows a strong growth rate of 4.7 percent, as a result of an increase in household consumption and two-digit expansion.

Finally, the European Commission launched 4.3 percent of its forecasts of growth in the Hungarian economy, so Hungarian and international organizations now expect far more than four percent growth in Hungary in 2018, which is in line with government expectations. This is supported by factors such as house-building program, persisting wage increases, increased domestic consumption, strong exports, development projects and the growing benefits of the service sector.

Recalling that while the economic policy leading to external and internal indebtedness in Hungary in 2000 led to bankruptcy in Hungary, today's growth bases are stable, and GDP is increasing from quarter to quarter by over 4%, the budget deficit is low, and the ratio State debt is decreasing from year to year.

The Hungarian economy has been on a balanced and sustainable path of growth since 2013, that is, it is a successful government policy to reduce taxes and increase wages – the ministry said in a statement.

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