A lecture by Mihaly Varga at the Economic Panel of the Free Summer University of the Carpathian Basin as a first point He stated that the economies of the Carpathian Basin are expected to expand beyond pre-pandemic levels this year and next. He also said: Hungarian economic growth may be among the first within this, and it may reach its pre-pandemic performance this year as well. This is mainly due to supportive fiscal policies, investment incentives, tax cuts and job protection.
Minister of Finance as a second factor Notable jump in deficit and debt levels due to crisis management, he said: While controlling the epidemic was the primary goal last year, we now need to focus resources on restarting the economy. Therefore, fiscal policy had to be relaxed in all countries of the region, which led to an increase in public debt. After a successful restart, the path of deficit and debt reduction should be restored.
Mihaly Varga the third Identifying recurrent labor shortages, which again can be a constant challenge in EU countries. The Finance Minister reminded: Employment in Hungary has already reached the pre-pandemic level, and the unemployment rate is the sixth lowest in the European Union. It is no coincidence that, in relaunching the economy, we focus on investments that increase efficiency and competitiveness, and that can offset the effects of labor shortages.
The finance minister said the appeal was accompanied by rising wages and increased consumption in most countries. Fourth discovery, noting that in Hungary, retail sales increased by 6 percent and profits by 10 percent year on year, according to the latest data.
Mihaly Varga As the fifth and sixth factor It was characterized by high rates of inflation and the monetary policy reactions to it. According to him, in addition to rising wages and demand, rising inflation is also affected by international developments, including supply and value chain problems. These processes force monetary policies across Europe to review and change their strategies in order to curb inflation.
Our interview with MNB Vice President Barnabás Virág was published today, who also detailed, in addition to the introduction of the euro, the series of central bank rate hikes due to the jump in inflation:
Cover image source: MTI / Zoltán Máthé. Finance Minister Mihály Varga will deliver a speech at the opening of the Esztergom Factory Hall at the Innomed Medical Zrt on July 16, 2021. On this day, Mihály Varga inaugurated the Esztergom Factory Hall, the Hungarian manufacturer of defibrillators, x-ray systems and electrocardiographs, with an investment of Ft 1.6 billion Hungarian. The medical technology company, which has a history of 32 years, has received 1.3 billion HUF support from the government in the healthcare subsidy programme.
