Battery Production Contribution to GDP Set to Double
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The contribution of battery production to Hungary's GDP could double after investments in the pipeline start up, National Economy Minister Márton Nagy said at a conference in Tarcal (NE Hungary) on Friday, according to a report by state news wire MTI.
Production of batteries account for 5.5% of Hungary's GDP at present, Nagy said at the iconFeszt economic policy conference. When planned manufacturing capacities are completed, that ratio could rise to 10-11%, putting Hungary among the frontrunners in the world in the segment, he added.
He noted that Hungary exported an annual EUR 10 bln of batteries and related parts.
He acknowledged a slowdown in the EV industry and pointed to the end of EV subsidies in Germany. While EVs account for 15% of new car sales in Europe, that ratio stands over 30% in China, but just 5% in the United States, he said. The ratio for Hungary is around 6%, he added.
He augured a pickup on the EV market in 2-3 years as researchers worked to develop better and cheaper batteries. He said an EV package for all of Europe was being drafted.
Addressing the macroeconomic outlook, Nagy said Hungary's targeted GDP growth of 2.5% for 2024 and 4.1% for 2025 could only be achieved parallel with a recovery of the European Union's competitiveness.
Commenting on wage growth, he said the mandatory minimum wages for skilled and unskilled workers needed to converge at some point. He added that around 200,000 people in Hungary were paid the minimum wage for unskilled workers and 800,000 got the minimum wage for skilled laborers.
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