2027 Budget Assumes 2.4% GDP Growth

The government assumed GDP growth of 2.4% drafting the 2027 budget, Prime Minister Péter Magyar said in an interview with public radio on Tuesday.

Growth is set to accelerate from 1.7-1.8% in 2026, the PM told Kossuth Radio, a day after outlining measures contained in the 2027 budget draft for lawmakers in parliament.

He added that the aim was to achieve GDP growth over 3%, based on the mid-term plan with a 2030 horizon.

The Finance Ministry expects the general government deficit to narrow to 4.0% of GDP in 2028, 3.4% in 2029 and 2.8% in 2030, Magyar pointed out, affirming that the 2027 budget targets a 4.9%-of-GDP gap.

The government calculates with average annual inflation of 3% – in line with the National Bank of Hungary's mid-term target – for 2027, he said.

Magyar said the 2027 budget would pave the way for Hungary's "reconstruction," noting his announcement on Monday of a "21st century Hungarian New Deal", tapping European Union funding for corporate and infrastructure investment. He called out the former Fidesz-KDNP government for failing to exploit Hungary's EU funding, while putting the country further in debt, and highlighted the example of Poland, which took full advantage of EU resources.