Eurostat has recently published the latest “Quality of life” survey which collects empirical evidence on and studies nine key aspects of life quality: material living conditions, employment, education, health, leisure and social relations, economic and physical safety, governance, environment and overall life satisfaction. According to the paper, in Hungary – similarly to the majority of European countries -- satisfaction with personal quality of life is lower than it would normally be justified by the country’s gross national product.
One of the key determinants of competitiveness is the quality and effectiveness of education. In order to improve it, in 2016 the implementation of teachers’ career model will be continued in Hungary. One element of that is a wage hike of 10 percent which – along with the lowering of the personal income tax rate – is expected to create a career model that will be attractive enough to persuade the most talented youth to become teachers.
In the press release of 22 May 2015, Fitch Ratings revised Hungary’s credit rating outlook from stable to positive, therefore the rating agency is expected to promote the country from the current BB+ category to investment grade as early as this year. The Fitch press release highlights recent Hungarian economic achievements, such as massive foreign trade surpluses, the lower-than-expected general government budget deficit and outstanding GDP growth.
According to seasonally adjusted GDP data published in the latest Eurostat flash report, in Q1 2015 gross domestic product grew by 0.4 percent in the Euro-zone and the EU28, while it was up by 0.6 percent quarter-on-quarter in Hungary. In the fourth quarter of 2014, this indicator showed 0.3 percent growth in the common currency bloc and 0.4 percent growth in the entire EU.
Foreign trade surplus figures clearly reflect improving economic activity in Hungary. The volume of revenues from both exports and imports has been up in comparison to the corresponding period of 2014. Year-on-year, foreign trade accumulated a surplus of EUR
288 million in the first quarter of 2015. In the observed period, the volume of exports was up by 7.7 percent compared to the same period of the previous year.
The European Commission published its Spring 2015 Economic Forecast on 5 May 2015,which – besides analysing the economic outlook of the European Union and the Eurozone-- provides a detailed economic prognosis for individual member states. In the opinion of the European Commission, rebounding growth in the global economy, further Euro depreciation, low oil prices and the EU’s stimulus programme will result in GDP growth of 1.8 percent in 2015 and 2.1 percent in 2016, within the European Union. With regard to Hungary, the EC has upwardly revised expectations in comparison to the earlier report, the Winter Forecast.
In the final quarter of 2014, the number of foreign tourist visiting Hungary was up by 11 percent year-on-year. The number of international trips by Hungarians rose by 2.3 percent, with respective spending up by 17 percent. Passenger services posted a surplus
of HUF 221bn (EUR 717 million)1, constituting an increase of HUF 47bn year-on-year. In 2014, the number of foreigners coming to Hungary increased by 5.4%, while that of Hungarians travelling abroad rose by 1.9%
The International Monetary Fund (IMF) has published its regular annual report on Hungary, formulated in accordance with Article IV of the IMF's Articles of Agreement. The report had been preceded by a visit of the IMF delegation to Budapest. The IMF’s experts met with representatives of the Government and the National Bank of Hungary (NBH), as well as certain financial market operators. The study acknowledges the achievements of the Hungarian economy, outstanding economic growth and the success of measures aimed at creating external and internal balance and reducing the economy’s vulnerability.
Thanks to the successful utilization of the funding available in the fiscal period of 2007-2013, economic growth in 2015 is once again expected to beat prior estimates. The timely launch of new tendering processes for the new fiscal period of 2014-2020 will further fuel economic expansion through boosting competiveness and employment. Development funding of HUF 850bn, which includes financing for 68 tenders, constitutes the first chunk of resources allocated for the Economic Development and Innovation Operative Programme (PEDIOP).
Hungarian PM Viktor Orbán and Chinese PM Li Keqiang came to an agreement in November 2013 in Bucharest to establish and operate a Tourism Coordination Centre in Budapest within the framework of the China-CEE partnership policy.