Hungary’s economic performance has been increasingly sound and balanced, Minister of Finance Mihály Varga said at a business forum organized by the American Chamber of Commerce (AmCham) in Budapest.

Hungary’s rate of GDP growth hit 4.7 percent in the last quarter, well above the EU average.

The fact that external and internal balances are favourable and growth has not been generated by even more loans shows that growth has been sustainable, he said. The rate of general government debt has been falling for eight years now, and government debt-to-GDP ratios have been repeatedly below the EU average, he added.

Positive macro-economic trends are creating favourable conditions for would-be foreign investors, among them for the member companies of AmCham. The six-year tax and wage agreement concluded at the end of 2016 has helped reduce payroll taxes and significantly increase wages in real terms, Mihály Varga noted.

Hungary has been deeply integrated into the global economy, for which Hungary’s volume of external trade and the volume of FDI are also proof. “Therefore, we must keep our eyes on events taking part in Southern Europe”, he stressed.

Besides stimulating growth, Hungary’s economic policy must continue to have prudent public finance management and reduce the country’s external exposure to risks. The budget draft for 2019, the “budget of safe growth” which is about to be submitted to parliament next week, also serves this end, the Minister of Finance said.

(Ministry of Finance)