Dep. State Secretary: Gov’t outlines plan to prop up economic growth

Initiatives

The government and the economy ministry are preparing measures to boost economic growth, among these is a home building program, deputy state secretary László Balogh said on public television channel M1, in reference to fresh GDP figures released this morning, Hungarian news agency MTI reported.

Year-on-year GDP growth slowed to an unadjusted and calendar-adjusted 2.3% in Q3, the Central Statistical Office reported. Quarter-on-quarter growth remained 0.5% for the third quarter in a row.

The government will discuss a comprehensive housing program in the near future, Balogh said.

Other measures to prop up growth include speeding up the evaluation of EU tenders and the disbursement of funding, making the labor market more flexible, and boosting lending, he said.

The slowdown of growth came as no surprise, Balogh said, noting that they projected growth to slow to 2.5% as part of the countryʼs convergence program.

He attributed the deceleration to the contraction of agriculture, burdened by the summer drought and last yearʼs high base. Industrial production and consumption continue to rise dynamically and foreign trade performance is outstanding, the deputy state secretary said.

In a related press release, the ministry said that growth continues to be over the EU average, is not based on rising debt, and its structure has remained stable and favorable. The fresh figures confirm that the negative external risks such as the migration crisis, the VW engine scandal and the slowdown of the Chinese economy have not had any significant impact on the domestic scene, the ministry said.

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