Varga Puts 2022 GDP Growth at 4.5%

Analysis

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Hungary's GDP could grow 4.5% this year ahead of an expected slowdown in 2023, Finance Minister Mihály Varga said at a conference organized by the American Chamber of Commerce (AmCham) and the Hungarian Investment Promotion Agency (Hipa) on Monday, according to a report by state news wire MTI.

Varga augured "favorable tendencies" by the second half of 2023 in terms of economic growth.

Hungary's GDP growth reached 7.3% in H1 2022.

Varga said talks on Hungary's European Union funding are "in the final phase", adding that monies from the Recovery and Resilience Facility (RRF) and the Cohesion Fund could be made available to the country by the end of the year.

Addressing fiscal matters, he said the general government deficit had "hardly widened" since May, and even ran a monthly surplus in September.

Varga said bilateral trade between Hungary and the United States reached USD 7.1 billion last year, with the value of Hungarian exports standing at USD 4.2 bln.

He added that over 1,700 U.S.-owned companies operate in Hungary, and the government has signed strategic partnership agreements with 92 of those.

In a statement issued to coincide with the conference, the Finance Ministry said the government aims to streamline taxes, launch subsidies for energy-efficiency investments at big companies and support energy-intensive SMEs while preserving the fiscal balance.

In spite of the deteriorating external environment, Hungary's financing for these measures is ensured, the ministry added, pointing to multifold oversubscription at government securities auctions.

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