“Thanks to its over the European Union average economic growth, falling tax burdens, and its consistent and calculable economic policy, Hungary will be able to remain an attractive investment destination it the upcoming years”, Minister of Finance Mihály Varga declared at the Inspiring Hungary international economy conference in Budapest.
In his speech, the Minister stressed that the achievements of the Hungarian economy can be protected using suitable measures, as clearly indicated by the fact that one third of the 5.1% growth realised in the first two quarters of this year may be linked to government measures.
“Rarely in the history of the Hungarian economy has there been a period such as the one that has existed in recent years, when the country has been on a convergent trajectory for a relatively long time”, Mr. Varga said, adding that overall, however, the global economy is experiencing a slowdown. As the Minister explained, in addition to consistent fiscal policy, tax cuts must continue in order for the Hungarian economy to continue on this trajectory, while in the interests of rapid convergence the business environment of enterprises must be further improved, and the high investment rate must be maintained.
“The government measures of the recent period, including the six-year tax and wage agreement, the government’s competitiveness programme, the funding being provided to families to facilitate home creation, and the investment-promoting economic environment, have all contributed to current growth”, he stated. The Minister pointed out that the cabinet has adopted every single point of the Economic Protection Action Plan, from which six measures, including for instance the 2 percent reduction in social contributions tax, the issuing of the Hungarian Government Security Plus bond, and funding for the construction of workers’ accommodation, have already been realised.
Mr. Varga also spoke about the fact that investment projects are playing an increasingly important role from the perspective of economic growth, and are to an increasing extent leading to production that represents a higher added value. “The momentum of investment projects is indicated by the fact that investment increased by almost 20 percent year-on-year in the second quarter of 2019, as a result of which the Hungarian investment rate could reach 29 percent this year, according to the Ministry’s expectations”, the Hungarian Finance Minister stated.
(Ministry of Finance)
