The growth of the Hungarian economy is a historical record
Hungary can see an unprecedented expansion, as the gross domestic product in 2021 IV. According to raw data, it increased by 7.2 in the third quarter and by 7.1 on a seasonally adjusted and balanced basis compared to the previous year.
Last week, experts forecast slightly lower growth, both on a quarterly and annual basis.
Historical growth
Last year, the Hungarian economy grew 7.1 seriously, making it the largest annual growth in Hungarian economic history in 2021 – said Minister of Finance Mihály Varga. Commenting on the statistics released this morning, the head of the ministry emphasized that the data show two things, on the one hand, economic policies based on tax cuts, support for families and businesses, and investment have proven to be effective. They are doing a quick recovery even after a crisis, he said. He pointed out that the Hungarian economy performed outstandingly in 2021 compared to the EU. The ministry said growth could be 5.9 percent this year, he said.
Fidesz: The left is pursuing a flawed economic policy
Never since the change of regime has the economy grown as big as it did in 2021. It grew below 7.1 during Fidesz, and minus 7 during Gyurcsány. In the election, we will decide whether Hungary’s economic success will continue with the national government, or whether we will fall back into the Gyurcsány era, when the left ruined the country and imposed restrictions on its own incompetence from families with children, the elderly and the young. he told the major ruling party about the news.
According to Fidesz, the left still forces the same economy with the bad, flawed policy it followed during its rule. They have been consistently attacking the national government’s economic policies since 2010. The candidate for prime minister of the left has also made it clear that he himself is “very liberal” in economic policy and appreciates the policy of the Gyurcsány-Bajnai government, which has ruined the country economically, killing Hungarian workers, businesses, families, sold out national wealth. Even the same Gyurcsány and Bajnai want to return. The left is never interested in the economic success of Hungary, but of Soros and similar foreign speculators.
Since the government of Fidesz-KDNP, Hungary has made a complete economic turnaround; Since the introduction of the tax reduction policy, the Hungarian economy has been growing, employment is growing and wages are also rising. We are keeping the Hungarian economy on a growth trajectory, and this is stable despite the coronavirus epidemic. Economic growth is receiving more and more family money for children, times, young people, Hungarian businesses, more and more for tax cuts, wages and rural development. Hungary must go forward, not backward!
– the statement concludes.
These sectors performed well
We may have a preliminary picture of the main character of the growth. They performed well in the manufacturing sector: the industry was able to increase its production volume in the last quarter of 2021 due to supply problems, and thus its value added certainly contributed positively to both quarterly and annual GDP growth.
Similarly, the construction industry also performed well, especially in December production volume was strong. So much so that its contribution to growth may have reached its industry, even though the sector is only one-fifth the size of its industry.
Due to strong domestic demand, household consumption may also have picked up, all the more so as epidemiological constraints have barely burdened this period. Monthly data on retail sales suggest that household spending has picked up, with services accounting for some of it.
Takarékbank expects higher growth by 2022
Takarékbank pointed out in its analysis that market services contributed the most to the growth, but the biggest surprise may have been the construction industry, as the construction industry jumped completely in December on December 29, exceeding its expectations, so its fourth quarter performance is far from complete. exceeded expectations. Earlier this year, significant household transfers (PIT rebate, 13-month pension, arms money) and a minimum wage and wage of up to 20, as well as a PIT rebate for workers under 25, could give a substantial boost to growth in consumption. In the first half of the year, the expected easing of the shortage of raw materials and chips, the commissioning of new industrial capacities, the holding of major festivals and the further recovery of tourism may sustain the growth. Thus, overall, growth expectations for this year have been raised from 6 per cent to 6.3 per cent, but the amendment also awaits the receipt of detailed data.
This is how we overtake the EU
It is worth recalling that in a similar crisis situation in 2009, the Hungarian economy performed well below the EU average during the Gyurcsány-Bajnai government. This was the result of the sacrificial work of the left-wing “expert government.” At that time, 6 reduced the performance of the Hungarian economy, while only 4.3 6 of the EU economy had shrunk completely. At present, however, Hungary’s economic growth is well above the EU average, and Hungary’s GDP growth is among the best in the EU. So it was with unemployment. In 2009, Hungary was well below the EU average and is now well above it.
Fourth place on Earth!
The current Hungarian growth figure is the fourth highest in the world. Hungary was surpassed by Azerbaijan (47.2 per cent only), the Philippines (7.7 per cent) and Uzbekistan (7.4 per cent). To the high growth rate in Azerbaijan, it is worth adding that there was a war in a part of the country last year, which is why this value was so extraordinarily high. In the region, we are far ahead of the Slovaks, the Czechs and the Romanians.
That is why we managed to achieve this great result
The various state programs are in leaving the crisis period caused by the coronavirus epidemic as soon as possible. Initially, the government even expected GDP to grow by 4.3 in 2021 on an annual basis. On the move, however, the economy was already showing a much stronger performance. The vaccination program was faster in Hungary than in the EU, and the restrictions could be lifted sooner.
Prime Minister Viktor Orbán announced at a World Conference last summer, among others, that in 2021, GDP will increase by 5.5 percent, then in 2022 families raising children will receive back the income taxes paid in 2021. The latter program has already been completed, and the families have received the solutions. Last August, the Central Statistical Office reported that gross domestic product grew 17.9 in the second quarter from a year earlier.
This data was also picked up by analysts, as there has been no example of such a development. By then, it seemed almost certain that there would be no obstacle to the promised benefits.
László Windisch, the vice-president of the Central Statistical Office, recently reminded the Hungarian Nation that Hungary was one of the first countries to emerge from the economic crisis compared to the EU countries. At the time, it was calculated that a five percent increase in the last quarter would be enough to reach a full-year 6.5 percent. He added that in his view, it could approach GDP growth by 20 per cent by as much as seven per cent.
Hungary is recommended for investment
To all this, it is worth adding that Standard & Poor’s still recommends Hungary for investment with a stable outlook. Mihály Varga emphasized that according to the credit rating, there was a 7% economic recovery in Hungary last year, which is one of the strongest in the EU. They are expected to grow at a high rate of more than 5 percent this year as well.In their report, they emphasize that in the last decade, the composition of the Hungarian public debt and the proportion of debt held by foreigners have been reduced over the years. Hungary’s debt and budget deficit are expected to decline in the coming years, the Minister of Finance wrote in a Facebook post.
Mihály Varga reminded that in the last six months, all three major credit rating agencies have given a favorable rating of Hungary. Last September, Moody’s upgraded Hungary, in January this year Fitch Ratings reaffirmed Hungary’s investment grade rating, and now S&P has maintained a favorable rating. “With the work of the last decade, Hungary has reached the point where all three major credit rating agencies recommend Hungary for investment even after a crisis,” the Minister of Finance emphasized.