Published: November 17 2023
The Finance Minister of Hungary, Mihály Varga, has highlighted the stable and strong economy of Budapest. In his address at the Figyelő Top 200 gala, he mentioned various positive indicators, including low inflation, investor confidence, and improving trade and current-account balances.
Stable Economy and Low Inflation
Varga emphasized that Hungary's economic fundamentals are stable and strong. The government has successfully brought inflation down to single digits, which has positive implications for real wage growth and consumption. This, in turn, is expected to boost GDP growth.
Investor Confidence and Government Securities
The finance minister also highlighted the steady investor confidence in Hungarian government securities. This was evident from a recent 500 million US dollar FX bond issue by the Government Debt Management Agency (ÁKK) and a record 245 billion sale of forint bonds.
End of Technical Recession
Varga pointed out that fresh data indicates the end of a four-quarter technical recession in Hungary. He mentioned that this recession was not a crisis as it did not result in widespread unemployment.
Improving Trade and Current-Account Balances
Lastly, Varga mentioned the improving trade and current-account balances in Hungary. These positive trends indicate a healthy economy and contribute to the overall stability and strength of Budapest.
With all these positive indicators, it is clear that Budapest's economy is in a good position and continues to show promising growth.
Questions & Answers
What did Finance Minister Mihály Varga say about Hungary's economy? Finance Minister Mihály Varga stated that Hungary's economic fundamentals are "stable and strong". He mentioned that inflation has been brought down to single digits and investor confidence in Hungarian government securities is steady. He also pointed to improving trade and current-account balances, as well as the recent successful bond issues by the Government Debt Management Agency.
Did Hungary experience a recession recently? Yes, Hungary experienced a four-quarter technical recession. However, Finance Minister Mihály Varga stated that it was "far from a crisis" as it did not result in a wave of unemployment. He also mentioned that recent data indicates the end of the recession.
What are the benefits of the decreasing inflation and increasing real wage growth in Hungary? As inflation has dropped into the single-digit range and real wage growth is set to return, it is expected to give impetus to consumption and boost GDP growth in Hungary.
What bond issues were recently conducted by the Government Debt Management Agency in Hungary? The Government Debt Management Agency (ÁKK) recently conducted a 500 million US dollar FX bond issue and a record 245 billion sale of forint bonds. These successful bond issues indicate steady confidence in Hungary's economy.
