Despite extraordinary expenditures, the government has consistently reduced the budget deficit and the national debt year after year, the Ministry of Finance emphasized in its interim report released on the situation of the central subsystem of public finances, excluding local governments, at the end of November.
There have been misleading press reports suggesting that now Hungary lags behind Romania, based on Eurostat’s fresh data that say that in 2022, Hungary’s GDP per capita at purchasing power parity was 76.6 per cent of the EU average, while in Romania, this ratio was 76.7 per cent. The economic researchers at the Nézőpont Institute investigated whether Romania had indeed overtaken Hungary in economic terms. ‘Based on Eurostat’s data, the answer is simple: no,’ researchers assert in a statement.
‘The fact of the matter is that this is the West’s stupidest war with Britain helping to lead the way: unnecessary, unaffordable, and unwinnable.’
On the basis of the ten-point proposal developed by the Ministry of Economic Development, the Hungarian government is launching a 2.9 billion forint Automotive Supplier Development Programme to enhance the role of Hungarian businesses as suppliers of multinationals in Hungary.
On the margins of the sixth China International Import Expo, Economic Development Minister Márton Nagy held talks with the leaders of the Industrial and Commercial Bank of China (ICBC), the world’s largest commercial lender, emphasizing Hungary’s aim of becoming a regional financial hub in addition to being the meeting point for Eastern and Western capital and cutting-edge technology.
This positive trajectory in Hungary’s financial landscape had an impact on the nation’s global ranking in terms of wealth. Hungary has advanced two positions, now sitting at 30th place among the world’s nations, demonstrating the country’s progress despite the challenging economic conditions.
‘And here we come. Our time has come because by becoming the meeting point of Eastern and Western investments, we provide a life insurance for Hungary, we provide a guarantee that in the coming years, Hungary will be the winner of the big global economic transformation that the automotive revolution dictates,’ Péter Szijjártó said.
The facility aims to produce 700–800 million aluminium beverage cans annually, with approximately half of them filled, mainly to meet the demands of local and regional third-party brands. Additionally, the company plans to serve its own local and regional markets from this plant.
During the announcement of Rolls-Royce’s new research and development investment, the minister highlighted that the company will design the tools necessary for the transportation of the future in its Budapest centre, including components for hybrid and electric aircraft and systems based on high-speed generators.
In its Tuesday report, the bank estimated a real growth of 0.4 per cent for 2023 and 3.5 per cent for 2024 in Hungary. The bank increased its estimate for the Hungarian Gross Domestic Product growth this year by 0.6 percentage points and raised the growth projection for next year by a full percentage point.
As regards so-called ‘globalization’, it is becoming evident that—due to technological and supply chains complexities—it is reaching its natural limits. We should, therefore, pay more attention to the rationality of domestic policies.
There is a slowdown in global growth. The economies of a once highly globalized world are drifting apart. The EMU economy is being hit particularly hard. The recession is coming and, according to projections, the EMU will soon enter stagflation, the worst of economic states.
According to the National Bank of Hungary, the ratio of gross government debt to GDP improved significantly last year.
The most recent OECD report paints a grim picture of the European economies’ imminent prospects, but thanks to the government’s strategic crisis management, Hungary is set to outperform all of its regional counterparts.
The International Monetary Fund has advised governments against granting widespread financial assistance amid the energy crisis. While energy companies would continue to enjoy unprecedented profits, average househoulds would be hit especially hard should governments follow the advice.
Through the adoption of the welfare state, or its more extreme form, the entitlement state, western economies took up huge financial liabilities which might hold serious questions for economic policy in the upcoming decades.
The moderation of Budapest’s role is largely due to the high share of infrastructure related public investments which developed Hungarian regions more than the capital.