2025: A year for families and SMEs, says Hungarian economy minister

National Economy Minister Márton Nagy said 2025 would be the year of families and SMEs at a press conference opening the new year in Budapest on Tuesday.

Nagy said households had felt the positive turnaround from September already and the trend would continue in 2025. He added that the ministry would closely track employment, wages, household consumption and borrowing, stability, and the situation in the home and car markets to ensure an uninterrupted advance.

In the case of SMEs, he said a pickup in lending would be key, adding that the endeavour would require the participation of the banking system and possibly assistance from the central bank. He pointed to the need to strengthen trust and cooperation between the state and the SME sector. Nagy acknowledged a slight increase in Hungary’s state debt, relative to GDP, in 2024, but said both state debt and the budget deficit were on the decline in 2025.

He estimated GDP growth reached 0.5pc-0.6pc in 2024, worse than expected, but a positive turn had taken place in the fourth quarter. He put this year’s GDP growth at 3.4pc. The labour market is stable and the number of inactive Hungarians is at a historic low, he said, adding that a minor increase in the jobless rate was no reason for concern. He projected real wage growth of 4-5pc in 2025 and said that increase would have a broad impact well beyond high earners. He noted that real wages had climbed for 82pc of full-time workers.