Economy Minister: Don’t compare Hungary to emerging markets


Hungary’s economy does not suffer from balance problems that would have justified the recent significant weakening of the forint but the country cannot escape the effects of international markets, National Economy Minister Mihály Varga said on Sunday. 

Varga stated on commercial television network ATV that Hungary should not be compared to emerging countries that have significant foreign trade deficit such as Turkey and the Republic of South Africa. On the contrary, explained Varga, Hungary had a trade surplus in 2013 and its economy, unlike Turkey’s, does not suffer from structural problems

Varga called Prime Minister Viktor Orban’s comment of earlier this week that economic growth could reach 4% in 2016 “completely realistic,” though in his opinion much will depend on developments in foreign markets, particularly Germany.

Commenting on the planned expansion of the Paks nuclear power plant, Varga claimed the related investments would increase Hungary’s assets, create up to 9,000 new jobs and boost GDP by 1%. Current calculations show that the associated loan would increase the public debt by 1% on a temporary basis “but this will not threaten the goal to reduce Hungary’s public debt in the years ahead,” he promised.

-- material from national news service MTI was used in this article


The New Age of Commerce is Approaching Analysis

The New Age of Commerce is Approaching

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.