Varga puts 2022 GDP growth at 5.5-6%
Image by Alexandros Michailidis / Shutterstock.com
Finance Minister Mihály Varga said next year's GDP growth could reach 5.5-6% at a business forum organized by the American Chamber of Commerce (AmCham) on Friday, state news wire MTI reports.
The 2022 budget, approved by lawmakers in June, was drafted assuming GDP growth of 5.2% next year.
Varga reiterated that 2021 GDP growth is expected to reach 7-7.5%.
Hungary's economic output has returned to 2019 levels, which is an "excellent result", he said, considering the tourism industry, which accounts for 8-10% of GDP, has still not fully recovered.
Varga counted higher energy prices, a pickup in inflation, a worsening pandemic and a shortage of raw materials among the downside risks to the economic outlook.
He said monetary policy tightening is "appropriate" in light of inflation data, but warned against making the same mistake as after the 2008-2009 crisis, when supportive monetary and fiscal policy "were rolled back too quickly".
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.