Brussels acknowledged that Hungary’s economic recovery is proceeding at a faster pace than in EU countries, Mihály Varga, Minister of Finance, mentionned in a statement following a meeting of EU finance ministers (ECOFIN).
The European Commission has made a major revision of its Hungarian growth forecast, from 5% to 6.3% this year, according to a statement from the Ministry of Finance released on Tuesday. 5% growth is expected next year against forecasts of 4.5% for the block as a whole. “We are one step ahead of other EU countries,” Varga said.
The European Commission expects member states to return to pre-epidemic growth levels by the end of 2022, he said, adding that this could be achieved in Hungary this year.
The government, he added, is striving to meet its target of 5.5% economic growth. Referring to the results of a G20 meeting of finance ministers and central bank governors, Varga said Hungary was far from accepting related tax proposals from the Organization for Economic Co-operation and Development (OECD), adding that the government would continue to reject all kinds of solutions that curb fair tax competition.
Rising inflation in Hungary continues in June
ING Bank chief analyst Péter Virovácz said that inflation in June was significantly higher than expected by the BNH, which means that there is a better chance that in July the central bank will raise its key rate.Continue reading
Meanwhile, Varga said ECOFIN ministers gave the green light to the Council of Ministers to adopt the first 12 national stimulus packages assessed by the European Commission.