Level of Public Debt may be Lower Than Planned

Debt

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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%.

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