Finance Ministry lowers GDP target to 6.8%

Analysis

The Ministry of Finance has lowered its projection for GDP growth this year to 6.8% against the backdrop of higher energy prices, inflationary pressure, and the impact of the fourth wave of the pandemic, Minister of Finance Mihály Varga said at a conference organized by the Hungarian Insurers Association (MABISZ), according to portfolio.hu.

Earlier, the ministry had put this year's GDP growth at 7-7.5%. Varga said the rising energy prices would "significantly restrain" the performance of European economies, parallel with higher inflation, while the economic impact of the fourth wave of the pandemic, albeit smaller than that of the second and third waves, would still be felt.

He noted that Hungary is one of just 10 countries in the European Union whose economies have recovered to pre-pandemic levels. Varga said keeping the economy on the growth path is "at the center" of the government's economic policy.

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