Because of forint exchange rate volatility this year’s budget does not have to be modified and the Government has a firm grip on fiscal processes, Minister for National Economy Mihály Varga said at a press conference, adding that the fiscal deficit will be below 3 percent and following a period of turbulences the Government is expecting markets to cool off.

The Minister for National Economy stressed the Government is predicting that the Hungarian economy will grow by 2 percent this year, and the current account and foreign trade balances both show significant surpluses.
He pointed out that recent forint exchange rate fluctuations have been caused by external factors, developments on foreign markets, and although Hungary cannot remain unaffected by trends prevalent on developing markets, Hungarian economic indicators are positive.

The Minster also emphasised that the Hungarian economy is on a sound footing; Hungary’s macroeconomic indicators are entirely different from those of Turkey. This year, the pace of economic growth will be double the figure of last year, while some analysts are even expecting it to be some 2.4-2.6 percent of GDP, higher than the Government’s estimate. Mihály Varga stated that the state budget is solid, and general government debt has been on a downward path.

(Ministry for National Economy)