Very few countries would be capable of “freeing themselves” from IMF assistance on their own as Hungary did, without taking out another loan, Mihály Varga said in Szentendre. The Minister added that in the coming years agriculture, manufacturing and industry are expected to become the key sectors of the economy.

At a presentation held at the Carpathian Basin College Camp organised by the Rákóczi Foundation, the Minister for National Economy said that if the state budget deficit falls below 3 percent and economic growth reaches an optimal level above 1.5-2 percent, the country will be able to gradually, step-by-step exit the debt trap.

There are some countries that may serve as examples, he stressed, such as South Korean and Taiwan in the 1950s; although these countries were also deeply indebted, their economies were able to rally.

The Minister also said that agriculture and the manufacturing and industrial sectors may evolve into drivers of the economy over the following years. Pursuing the Eastern Opening policy is also important, he added: the implementation of this programme requires closer economic relations with the Arab countries, China and Russia.

Over the past years, a part of EU resources totalling some 7000-8000 billion forints received by Hungary was insufficiently utilised; many funds were invested in useless prestige projects. In order to prevent this from happening again, in the coming years EU funding is expected to be put to better use as the allocation of funds will not be centralised but will instead be the responsibility of four ministries.

Speaking about enhancing the enforcement of Hungary’s interests within the EU, Mihály Varga also mentioned the importance of cooperation between the Visegrád countries. He underlined that the population of the four countries – Poland, the Czech Republic, Slovakia and Hungary – total 63 million people, and they have achieved good results as partners on several agricultural issues.

(Ministry for National Economy)