In accordance with Prime Minister Viktor Orbán's decision, the Ministry of Economic Development continues its activities under a new name, the Ministry of National Economy, from January 1, the Ministry told MTI on Monday.
The aim of the transformation is for the Ministry to support the government's primary economic policy goal for 2024, the restoration of economic growth, with a new and innovative approach and an expanded scope of tasks (e.g. trade, space industry development, tourism), in line with the Prime Minister's expectations, they added.
They recalled that 2023 was a year of disinflation, with the government bringing inflation down to single digits, and that the economy was increasingly showing hopeful and encouraging results thanks to effective measures.
From the third quarter onwards, GDP resumed its growth path, and the Hungarian economy posted one of the best quarterly performances in the EU, with the government bringing inflation down to 7.9% in November, which could fall to around 6% by December, real wages are rising again from September, the twin deficits have been eliminated and confidence in the Hungarian economy is unbroken, they said.
However, they said that further measures are needed to restore economic growth. The current difficult economic situation, the current crisis in Europe, will not go away, but must be tackled by government means. GDP growth can be maintained at a high level in the long term if Hungary exploits all its growth reserves, supports and develops strategic sectors such as logistics, electric vehicles, defense and food, and helps to strengthen the Hungarian national champions, they said.
According to the ministry, the first step towards restoring economic growth is therefore to make progress in three interlinked areas. First, to restore consumer confidence, first of all, real wage growth is necessary but not sufficient.
Second, domestic production and investment need to be restored. The government aims to keep investment above 25%, and will develop a new loan program to this end, which could be launched early next year.
As a third step, labor market activity needs to be further increased, with the activity rate in the 15-64 age group rising from 78% to 85%. To this end, the government will prepare a new and targeted labor market program, they said.
To achieve all these goals, the Ministry of National Economy will develop new and innovative measures for the government, while continuing to help businesses through targeted programs such as the Széchenyi Card Program, the HUF 200 billion re-launch of the Gábor Baross Re-industrialization Loan Program, or the nearly six-fold expansion of the Food Industry Supplier Development Program, the statement said.


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