On visiting the Budapest Stock Exchange to celebrate the launching of the Xetra trading system, Minister for National Economy Mihály Varga said that as parallel to the economic rebound the profit outlook is also improving it is worth investing in the Hungarian economy.
Speaking to journalists the Minister said that the Hungarian economy has great growth potential; this year brought a trend reversal and for next year the Government is anticipating growth of 2 percent which means that in 2014 the output of the Hungarian economy is expected to double.
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Responding to a question on the possible initial public offering of the MVM Ltd next year the Minister said that currently he does not see the possibility of listing MVM or any other state-owned enterprise on the stock exchange, but this option cannot be ruled out in the longer term. He added that stock market listing is a long process and MVM is conducting several acquisitions which take up significant resources.
Mihály Varga also said that achieving steady economic growth in Hungary mainly requires some more factors to join the current drivers of growth, such as domestic consumption which the European Commission’s report also expects to pick up next year.
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He explained that it is reasonable to expect household consumption to increase, as lower taxes, utility tariff cuts, the extension of family tax allowances as well as wage increases will leave more money at households.
Consequently, in addition to exports, the vehicle industry, agriculture and the construction sector, domestic demand will also boost economic growth.
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In the opinion of the Minister, the higher number of growth factors within the Hungarian economy and higher available resources via Xetra may provide the opportunity of an IPO for Hungarian companies within which the state is a minority shareholder.
(Ministry for National Economy)
