The government was able to launch the action plan for economic relaunch from sound economic foundations. Compared to other countries, the government spent a lot to encourage investment. If oriental vaccines succeed in maintaining protection above the EU average, nothing can stop the Hungarian economy in the coming period, as Laszlo Giorgi, Minister of State at the Ministry of Innovation and Technology (ITM) said on the M1 broadcast this morning.
In the three years preceding the crisis, the Hungarian economy showed the fastest growth in the past three decades, while the budget remained stable and the deficit target was maintained. And between 2017 and 2019, wages have also increased at an accelerated pace.
There was steady money in the budget and we were able to spend the resources well structured under the Economic Protection Action Plan – so the Secretary of State evaluated the government’s crisis management last year.
He pointed out that in December the number of workers increased by twenty thousand people from the previous month before the outbreak of the crisis in February 2020. Hungary has spent more huge demands than other countries on stimulating investment, boosting jobs and creating new jobs.
“We also encouraged capacity building when others decided to hold back investment.” He said.
The government envisions that in the wake of the crisis, increased capacity will be a competitive advantage due to increased demand in our export markets.
The difference in dealing with the previous crisis is that after 2008, the then-liberal socialist government really decided to take a hit and raise taxes, and now the current government decides to cut taxes and contribute.
They are in constant consultation with business advocacy organizations. The government will launch consultations in February. Corporate support on the basis of personal services is needed in the restart, which is why the government launched a small loan of 10 million HUF without a percentage, which should start repayment after the third year only.
He confirmed that the state-backed corporate loan portfolio amounted to 2,400 billion HUF. In the past year, Hungary’s corporate loan portfolio grew at the second-highest rate in the European Union.
On the economic outlook for this year, he said that the 4 percent increase that the government expects also depends on the degree of protection from the virus. Currently, vaccination is better than the average European Union, and with the purchase of oriental vaccines, we have a good chance that the vaccination will be higher than our vaccination. He said that if this is the case, then nothing can stop the Hungarian economy in the coming period.
Cover photo illustration.