The latest employment, retail, industrial production and export figures confirm that the Hungarian reforms are working, and the Hungarian economy is producing outstanding results also by European standards, Minister of State for Economic Regulation at the Ministry for National Economy Béla Glattfelder said on Saturday at a press conference held in Budapest.

The Minister of State drew attention to the fact that the Hungarian economy is growing on stable foundations. The gross domestic product (GDP) increased by 3.6 per cent last year, and the expected growth rate for 2015 is around 3.1 per cent but may well be higher. Mr Glattfelder highlighted that the sovereign debt to GDP has decreased by 4 percentage points since 2010, and other than Hungary, only Latvia, Poland and Germany have been able to reduce their debts to GDP.

Based on the trend of industrial production, Hungary is among the top Member States in the EU, and the growth of industrial production contributes to the acceleration of the rise in exports, he said, adding: during the first period of the year, the growth of exports increased to over 10 per cent, and there is a good chance that Hungary will reach a record export surplus in 2015.

The politician takes the view that the growth of the economy and industrial production also offers the Hungarian people an opportunity to improve their living standards. One of the most important indicators of this improvement is the figure of retail sales which has also increased in the last six months, and which now exceeds the pre-crisis level. He added: the latest figures refute earlier assumptions, based on which the introduction of Sunday closing in retail outlets may reduce sales, and consequently, the VAT revenues of the State.

Mr Glattfelder also told the press that the investment rate was 21.3 per cent in Hungary in 2014, which was above the average of the Visegrád countries, and Hungary is by far the best in the region also in terms of attracting foreign capital to the country.

The expansion of the economy and industry creates more jobs as well. The number of those in employment has been in excess of 4 million for more than a year, and has increased by more than half a million since 2010; the competitive private sector has accounted for the bulk of the increase, having created some 290,000 new jobs, he said.

The Minister of State further highlighted that the economic growth has not resulted in increased environmental pollution. Hungary has achieved the fourth best result in the European Union in recent years in the field of primary energy reduction by virtue of the fact that the rate of its primary energy consumption has decreased by 15 per cent. The EU average was 8 per cent.

Small and medium-sized enterprises (SMEs) accounting for almost 50% of GDP, too, have been helped by a number of measures in the past few years, and as a result of tax reforms, some HUF 700 billion more has been left with SMEs and the corporate sector, Mr Glattfelder said.

The Minister of State takes the view that the reduction of state bureaucracy and of the burdens of businesses will be an important task during the period to come. These measures, combined with the continuation of the reforms and the available Hungarian and EU funds, will ensure the continued expansion of the Hungarian economy.

Mr Glattfelder highlighted: it will be necessary to pay more attention to regional criteria in the development of industry in the future, including that new jobs should be created in the largest numbers in the free economic zones.

The Minister of State reiterated: a formidable industry development programme began last November, and the calls for proposals which were launched as part thereof are designed to support investments in free economic zones. The most important goals of industry development include the reduction of territorial inequalities, and the development of new capacities in areas where there is sufficient work force of the required quality.

(MTI, Ministry for National Economy)