Economy minister puts 2024 GDP growth at 2-3 percent

Nagy said Hungary would not achieve 4 percent GDP growth this year because of a temporary weakening on its export markets. The 4 percent growth rate is achievable from 2025 and can be sustained in the long term, he added.

The competitiveness strategy was drafted based on feedback from close to 1,300 businesses, the minister said. The economy needs “fine-tuning” rather than a “turnaround”, he added.

He said the government continued to work for Hungary’s development “to reach 90 percent of the EU’s” by 2030. Its employment rate must rise to 85 percent and the investment rate to 30 percent of GDP, including a corporate investment rate of 20 percent, said Nagy.

The economy must be “re-industrialised” and the export of goods needs to climb to 100 percent of GDP, he said. The government wants Hungary to be among the 20 most competitive countries by 2030, the minister added.

The government will work to “ensure high-quality work force”, incentivise mobility and trainings, raise real wages continuously and consistently, and reduce the wage gap, he said. Companies’ competitiveness will be further boosted by credit schemes, Nagy said.

Hungary’s competitiveness strategy also prioritises the development of Hungarian suppliers and the support of R+D+I, as well as strengthening Hungarian-owned industrial companies, he added.

Gergely Fabian, the state secretary for industry policy and technology, said the competitiveness strategy focused on boosting the vehicle industry to ensure that Hungary becomes a market leader in new technologies such as e-mobility. It also sees the food industry, health care, chemical industry, steel and plastics manufacturing as priority sectors, he said.

The strategy also focuses on information and communications technology and “the creative industry”, he said.