Marton Nagy - Photo:

Nagy: Single-digit inflation, sustainable growth main goals

Hungary's biggest task is to reduce inflation to single digits, while growth must be restored and set on a sustainable path, the minister of economic development said at a European Union Competitiveness Council meeting held in Bilbao.

The ministry cited Marton Nagy saying on Tuesday that the government had introduced effective measures to reduce inflation, such as compulsory price cuts for retailers and an online price monitoring system. Additionally, in order to return to 4-5 percent economic growth, growth in real wages and consumption must be restored in the short term, and a turnaround in competitiveness must be achieved in the medium term, he said.

Nagy said the Hungarian economy had a “very favourable outlook”.

With the help of a boost in competitiveness, the economy could return to a growth path in 2024 and economic reforms started in 2010 can be continued, he said. The goals include full employment, higher wages, stronger families, and Hungary reaching 85-90 percent of the EU’s level of development by 2030, with GDP increasing to 160,000 billion forints (EUR 430bn), he added.

Digital and green transition must be accelerated, requiring a dual transformation in the economy, he said. Hungary’s energy independence must be further increased and electricity imports reduced to zero by 2030, he added.

He also said that families and full employment must be protected so guest workers can only be used in a controlled and transparent way, keeping in mind Hungarian labour market trends and demographic goals.

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