Government outlines new convergence program

The Hungarian government projects 2.9% of GDP budget deficit for 2014 and over 3% economic growth for 2017 in its convergence program sent to the European Commission. The program was outlined to the press by Economics Minister Mihály Varga as one characterized by "stronger economy and less debt."

As the financial website Portfolio.hu states, the Convergence Program contains the government’s forecasts for GDP growth and inflation, among other macroeconomic indicators. The figures tell us whether the cabinet’s outlook on the economy has improved or deteriorated compared to the previous Convergence Program.

After assessing the programmes the European Commission will make country-specific recommendations the European Council is expected to review and approve at the end of June.

The Hungarian government projects ever faster growth for the country, expecting gross domestic product to rise by more than 3% by 2017. The structure of growth is also expected to become healthier, with a larger role envisaged for recovering domestic consumption.