Level of Public Debt may be Lower Than Planned
Image by xtock / Shutterstock.com
This year, the level of public debt may be much lower than planned due to accelerating inflation and strong economic growth, Gergely Suppan, senior analyst at Magyar Bankholding, told business daily Világgazdaság.
The expert added that, due to high inflation (known as a GDP deflator) in 2022, nominal growth could be as high as 18-20%, allowing Hungarian GDP to exceed HUF 64 trillion.
With a double-digit rise in consumer prices, the public debt actually inflates, so if the cash flow deficit does not increase further, then according to the analyst, the level of public debt as a proportion of the gross domestic product may fall from last year's 76.8% to below 72% this year.
Moreover, next year, the decrease may be even more significant, and the indicator may drop to close to 67%.
ADVERTISEMENT
Corvinus Ranked Among Top Business Schools in Europe
Orbán Participates at Milei Inauguration in Buenos Aires
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.
