According to György Matolcsy, the Hungarian economy is expected to expand in 2013. This was the key message the Minister for National Economy was emphasizing, speaking at the session of the Parliamentary Budget Committee on Monday, and adding that in 2010-2011 Hungary managed to implement successful financial and economic consolidation.

He stressed that in the past two years employment improved in both the public and the private sectors and the unemployment rate could be brought down to about 10 percent.

In 2011 and 2012, he said, the central budget deficit was below 3 percent of GDP and it will also remain at that level in 2013, for the third year in a row.
Next year may see a growth trend reversal and the excessive deficit procedure against Hungary may be abrogated. General government debt as percentage of GDP will next year continue to decline and as György Matolcsy explained it is expected to further moderate from 82-83 percent in 2010 to 77 percent in 2012 and 73 percent in 2013, calculating at a 283 HUF/EUR exchange rate.

After contracting this year the economy will expand moderately in 2013; the Ministry for National Economy based the 2013 budget on a GDP growth forecast of 0.9 percent, the Minister stressed.

He also emphasized that the Government has implemented a fundamental reform regarding the taxation system; currently tax revenues as percentage of GDP total 39 percent, and that indicates lower tax liabilities for small and medium-sized enterprises. With regard to the taxation reform it has been a significant achievement that instead of levies on labour, the emphasis of taxation was shifted towards levies on consumption and turnover.

(Ministry for National Economy)