Sara Patel
TLDR: Hungary could potentially lead the EU’s economic growth ranking this year, with a predicted growth rate of 2.4 percent, compared to the EU average of 1.3 percent, according to Finance Minister Mihály Varga. The Hungarian government aims for even higher growth of 3.6 percent, and is confident that this will be accompanied by an improvement in competitiveness. The government is focused on achieving economic growth exceeding four percent by fortifying the pillars of growth, maintaining a high investment-to-GDP ratio, and attracting major investments. Minister Varga also addressed Ukraine’s four-year EUR 50 billion funding, emphasizing that it should be assessed annually by the EU committee to determine the need and usage of the funds.
Hungary aims to top the EU’s economic growth ranking this year, with a predicted growth rate of 2.4 percent, significantly higher than the EU average of 1.3 percent. Finance Minister Mihály Varga highlighted this in a meeting of EU finance and economy ministers in Brussels. The Hungarian government, however, expects even higher growth of 3.6 percent and is confident that it will be accompanied by an improvement in competitiveness.
The government is committed to achieving economic growth exceeding four percent by focusing on fortifying the pillars of growth. One crucial factor is maintaining the investment-to-GDP ratio above 25 percent to sustain economic development momentum. The country has seen a substantial influx of working capital and major investments, such as the establishment of car factories and battery plants, further bolstering economic growth.
In regards to Ukraine’s four-year EUR 50 billion funding, Minister Varga stated that Hungary’s position is for the facility to be assessed annually. The EU committee would evaluate the need and usage of funds and decide on disbursement for the following year based on this assessment. Minister Varga hopes that the Hungarian proposals will be assessed at the EU summit on February 1 and that the European Union will develop a solution acceptable to all member states.
