Gov't Aims to Raise GDP Growth Over 4% in 2024

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Photo by Feng Yu / Shutterstock.com

Boosting economic growth over 4% is a "resolute goal" of the government this year, Gergely Suppan, the head macro analyst at the National Economy Ministry, said in an interview with commercial broadcaster Hír TV on Wednesday, according to a report by state news wire MTI.

Suppan said the structure of this year's growth would be more balanced this year and pointed to the positive impact of record FDI, large-scale investments in the automotive and battery production industries, and subsidized credit schemes to support domestic companies' investments.

Keeping the investment rate over 25pc of GDP is important to ensure growth plans pan out, he added.

Suppan acknowledged the difficulty of protecting the economy from external price shocks but said falling commodities and energy prices had improved outlooks. Inflation in Hungary will "normalize" as base effects fade, adjusting to the average for the region, he added.

He said the technical recession in Germany, along with competitiveness and structural challenges there, such as the relocation of entire chemical industry plants to other countries, could have a negative impact on Hungary's economy because of weakening external demand, but added that Hungary could profit from relocations in some branches of industry.

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