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Nagy Sees 2024 GDP Growth at 4%, Opposes NBH Positive Real Rate Target

HUNGARY
  • Hungary’s government is looking for ways to boost consumption to restore economic growth and budget stability simultaneously, Economic Development Minister Marton Nagy said at a conference in Budapest.
  • He said the economy is “emerging from a storm” after a yearlong recession. GDP in 2024 may grow at 4% after staying flat in 2023.
  • “The central bank operates in cyclops mode, only paying attention to inflation. Let's hope he doesn't go blind” Nagy said according to local newspaper Világgazdaság. Regarding growth, he said that the Hungarian economy's ability to grow will be restored with a decrease in inflation. The only problem are real interest rates, which will turn positive from September.
  • Regarding the minimum wage increase in January, he said that VOSZ (the National Association of Entrepreneurs and Employers) is communicating about 10 percent, while the unions want a 15 percent increase, and the increase next year could be somewhere between the two, according to the newspaper.

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