Varga: Brexit could slow Hungarian GDP growth by 0.4%

Int’l Relations

The exit of Great Britain from the European Union could slow the speed of Hungarian GDP growth by 0.3-0.4 of a percentage point, National Economy Minister Mihály Varga said yesterday at a press conference regarding the 2017 Hungarian budget bill, national news agency MTI reported.

State secretary Péter Benő Banai and National Economy Minister Mihály Varga give a press conference on next yearʼs budget yesterday. (Photo: MTI/Szilárd Koszticsák)

Varga said Brexit would have a direct effect due to Hungarian-British economic ties and an indirect effect through the European Union. 

The Economy Ministry compiled a report that mainly examined foreign trade and the effect of the British economy on the European economy. The ministry also took into account that Great Britain is a a net contributor to EU finances and Brexit could affect Hungaryʼs status as a non-beneficiary, Varga said.

A British exit would have consequences that are difficult to measure, among them changes in employment opportunities in Great Britain, its effect on bilateral trade and British investments in Hungary and financial service providers in Great Britain possibly moving to other countries.

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