Europe’s economy is showing the weakest growth in the past six decades, said Mihály Varga, President of the Hungarian National Bank (MNB), on Wednesday in Debrecen at the Hajdú-Bihar County Chamber of Commerce and Industry’s TOP 100 year-end partner meeting.
According to Varga, this is primarily due to high energy prices, excessive European bureaucracy, declining international engagement, and Europe’s “falling behind in and missing out on” the technological revolution.
He added that the global economy is undergoing a fundamental restructuring, with its previous growth engines slowing down, while each major economic region faces its own challenges. In this situation, expanding and improving the quality of corporate lending is crucial, which is why the Hungarian National Bank introduced the Qualified Corporate Loan initiative.
Bold inflation forecast
The MNB’s primary goal is to achieve and maintain price stability, and Varga noted that favorable developments mean next year’s inflation could be even lower due to central bank and government measures,
with an annual average expected to fall between 3.4–3.6 percent.
This forecast is surprisingly low, as the MNB’s current official projection for next year is 3.8 percent.
Article in english at the Debreceni Nap page.
