Official: Government sees GDP growth of 2.5 percent in 2024, 4.1 percent in 2025

Hungary’s economy is able to grow by around 4 percent in the medium term, Tibor Toth told public broadcaster Kossuth Radio.

The first-quarter growth rate indicates that the country has returned to a growth-path, Toth said, noting that the economy expanded by 0.8 percent in a quarter-on-quarter comparison.

The factors behind the economy’s growth are continuously getting stronger, the state secretary said, noting that real wages have been growing since September last year, fuelling household consumption. Higher volumes of exports and further investments will also contribute to the country’s economic growth, he said.

The government is also reducing the public debt, Toth said, noting that in line with the current Convergence Programme, it was set to drop in 2026 to below 70 percent of GDP from last year’s 73.5 percent. Hungary will keep reducing the debt after 2026, too, and its public debt-to-GDP ratio will reach 60 percent, he said.

Toth emphasised the government’s commitment to reducing the budget deficit, noting it targets a deficit of 4.5 percent of GDP in 2024, 3.7 percent in 2025 and 2.9 percent in 2026.