The 2022 budget law targets growth of 5.2%, but government measures are expected to lift consumption, according to a ministry forecast for the 2021-2025 period published on Wednesday. Household consumption in 2022 is likely to increase by 6.7%, up from 3.6% expected this year. Personal income tax forgiveness for young employees and a rebate for households with children, as well as a pension supplement, among other measures, may add 1.63 percentage points to GDP growth next year, the ministry said. It added that economic growth was expected to exceed 4% every year between now and 2025.
Meanwhile, the public debt-to-GDP ratio is expected to fall to 69.3% by 2025 from the 79.9% estimated for this year, the statement said. Thanks to the swift economic recovery, the budget deficit is expected to narrow to 1.5% of GDP by 2025 from the 4.9% projected for 2022, it said. Hungary’s improving economic indicators put the country in a better position to face global economic risks, strengthen its financial stability and boost investor confidence, the ministry said.