FinMin Upbeat About GDP Data, Hungary Refuses to Take Afghan Migrants

LOCAL NEWS

• FinMin Varga says the fresh GDP data (17.6% y/y & 1.7% q/q) shows the economic recovery in is moving forward at a pace that is "among the fastest in the EU".
  • Said the structure of growth is "healthy" and extends to "a broad range of economic sectors".
  • Govt measures to shield against economic fallout from the pandemic and aid the recovery could contribute 8.4% to economic growth this year."
  • Now the goal is to preserve the [growth] advantage the Hungarian economy enjoys compared to the European Union.
  • That's why we're continuing an economic policy based on tax cuts, workplace creation, investment incentives and family support,"
• Hungary's state debt to GDP fell to 77.6% at the end of Q2 after reaching 81.0% in the previous quarter, lifted by govt expenditures related to the coronavirus pandemic.
  • Hungary's constitution stipulates that year-end state debt relative to GDP must decline until the ratio reaches 50%, but the government anticipated the level would rise last year because of spending on pandemic defense and economic stimulus.
  • Amendments to this year's budget show the state debt ratio falling to 79.9% at end-2021.
• State secretary says Hungary will not allow an unrestricted inflow of migrants from Afghanistan.
  • "The Hungarian govt refuses to make the Hungarian people suffer the consequences of such "flawed geopolitical decisions and operations",
  • and refuses to yield to calls to give blanket admittance to those fleeing Afghanistan in this difficult period"