Hungary’s economic growth in 2012 depends on its partners as well as the country itself, National Economy Minister György Matolcsy said on Thursday, after the European Commission issued fresh economic projections for EU member states.
The Commission put Hungary’s GDP growth next year at 0.5%, well under the government’s 1.5% projection.
Growth projections for national economies in Europe are being lowered daily, Matolcsy said. France lowered is projection for growth next year from 1.75% to 1% and Germany could follow suit, he added.
Germany is Hungary’s most important trade partner, thus if Germany hopes for bigger growth, Hungary can hope for growth to accelerate, he said.
If Hungary’s 2012 GDP growth target is achieved, there will be a realistic chance that the general government deficit will be under 3% of GDP in 2013 too, Matolcsy said.
The Commission put the deficit in 2013 at 3.7% of GDP in its fresh projections.
Matolcsy said the Commission had failed to take into account the effects of structural reforms in the Szell Kálmán Plan in 2013. The government could take decisions on these reforms in the coming months and submit them to Parliament, he added.