Head of the PM’s: Foundations of economy stable, strong

The foundations of the Hungarian economy are “stable and strong” despite “difficulties reflected by the markets or the forint rate”, Gergely Gulyás, head of the Prime Minister’s Office, told a regular weekly press conference on Thursday.

Hungarian economy

Gulyás said that Hungary’s industrial output had been 9.4 percent higher in May than in the same month last year. He added that the country had reached full employment, government revenues had increased and “a large part of them will probably prove to be under-planned”.

He insisted that the government had taken all measures to ensure stability of the budget, and the deficit targets could be met both this year and in 2023.

Gulyás said the exchange rate of the forint was heavily influenced by energy prices, primarily the price of gas, adding that the euro had also weakened against the dollar. “All that is caused by the war and the sanctions (against Russia) from which the whole of Europe suffers,” he said, noting that even Germany’s trade balance was in the red.

Concerning inflation, Gulyás said Hungary was “doing somewhat better” than other countries in the region, but added that the exchange rate of the national currency was “somewhat worse”.

Read alsoHead of the PM’s: Foundations of economy stable, strong

Hungary and the EC

On another subject, Gulyás said the government had made progress in talks with the European Commission concerning Hungary’s access to the EU’s recovery funds and adopted the EC’s positions in four areas.

The government will reduce the ratio of public purchases with a single bidder below 15 percent, and ensure legal remedy at a law court against the prosecutor’s decision in corruption cases, Gulyás said.

The government will also ensure broader social consultations before submitting draft laws to parliament, and will reduce the number of fast track legislative procedures, he said.