2021 GDP growth could be around 7% - PM economy advisor

Analysis

Márton Nagy

Hungary's full-year economic growth could be "around 7%" in 2021, Márton Nagy, the prime minister's advisor on economic policy, said on public radio on Wednesday, a day after preliminary Q2 GDP data were released, according to a report by state news wire MTI.

Nagy told Kossuth Rádió it could be said "with a high degree of certainty" that growth would reach the 5.5% threshold triggering a personal income tax rebate for families with children.

Hungary's economy grew at a year-on-year rate of 17.9% in Q2, the Central Statistical Office (KSH) said on Tuesday.

Nagy noted that the Q2 GDP data puts Hungary among the "frontrunners" whose economic performance has recovered: Sweden, Poland, and Romania.

He noted that factories that shut down in the base period were operating at full capacity in Q2, while the catering and commercial accommodations industry re-opened and consumption rebounded. The construction, retail, and service sectors were also strong, he added.

The advisor also acknowledged the downside risk of further pandemic waves, but said restrictions would probably be on a smaller scale, pointing out the example of Israel, where restrictions aren't as tight as earlier in spite of the marked presence of the delta variant.

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