Latest news with #NationalEconomyMinistry
Budapest Times
07-07-2025
- Business
- Budapest Times
Government remains committed to reducing budget deficit and cutting state debt
The National Economy Ministry announced on Thursday that the government has decided to activate a national escape clause, allowing an increase in fiscal expenditures while remaining within European Union budget rules. By activating the clause, the ministry said Hungary's budget expenditures may rise, over thresholds set jointly with the EU, to a degree level with the increase in defense spending from a 2021 base, up to 1.5pc of GDP. As Hungary has raised its defense spending significantly over the past five years, in line with a commitment to NATO, the increase in expenditures allowed under the national escape clause may apply to both defense and non-defense expenditures, it added. The government has renamed a 'Defense Reserves' item in the 2026 budget to the 'Economic Development Framework' and will activate it, allowing additional, targeted expenditures that are not contained in the current budget act, the ministry said. In addition to topping up and tapping the Economic Development Framework, the government remains committed to reducing the budget deficit and cutting state debt levels, it added. As well as preserving fiscal stability and maintaining strict fiscal discipline, the government aims to achieve the highest possible degree of economic growth, the ministry said.
Budapest Times
11-06-2025
- Automotive
- Budapest Times
KSH: Fuel prices in Hungary are below average
The National Economy Ministry has announced that prices at the pump in Hungary were under the average amongst neighboring countries in May. Data compiled from the EU weekly Oil Bulletin by the Central Statistics Office (KSH) show that the price of petrol in Hungary averaged HUF 584/litre during the month of May, HUF 5 under the average in neighboring countries. The average price of diesel was also HUF 584, HUF 4 under the average in neighbouring countries. Hungary's government earlier said it would intervene if motor fuel prices exceeded the average in neighboring countries.
Budapest Times
11-06-2025
- Business
- Budapest Times
Fitch Ratings affirms Hungary's sovereign rating with a stable outlook
Fitch Ratings has affirmed Hungary's sovereign rating with a stable outlook. The National Economy Ministry said all three big rating agencies have put Hungary in the investment grade category. The ministry faulted decision-makers in Brussels for adopting a failed economic policy, supporting the war instead of peace, and giving all available funding to Ukraine, while the European economy faces growing challenges. The government is working to shield Hungarians from the negative external environment and strengthen the economy, allocating resources to support families and SMEs, it added. In spite of pressure from Brussels, the government is implementing Europe's biggest family-friendly tax cut programme, while taking firm steps against unjustified price increases, the ministry said. At the same time, the government continues to preserve fiscal stability and exercise strict fiscal discipline, maintaining its commitment to reduce state debt and the budget deficit, it said. In May and June, budget revenue was boosted by a HUF 110bn dividend paid by Liszt Ferenc International operator Budapest Airport and a HUF 200bn dividend by state-owned energy group MVM, it added. Hungary's economy stands on firm foundations, confirmed by the latest data showing employment at close to 4.7 million and a record low number of job-seekers, the ministry said. Real wages have climbed for over a year and a half, and the tourism sector is set to have a record year in 2025, it added. Confidence in Hungary is reflected in bond issues on international markets, most recently a EUR 1 billion security issued by the Hungarian Development Bank (MFB) that drew outstanding interest, the ministry said. The ministry highlighted stimulus programmes such as the Demjan Sandor Programme for scaling up SMEs that will pump over HUF 1,400bn into the economy.
Budapest Times
03-06-2025
- Business
- Budapest Times
Moody's affirms Hungary's investment-grade sovereign rating
Moody's Ratings affirmed Hungary's investment-grade sovereign rating at a scheduled review on Friday. The National Economy Ministry said in a statement that all three big credit rating agencies put Hungary in the investment-grade category, thanks to the stable foundations of the country's economy. Employment remains high, real wages are increasing dynamically, and domestic tourism should have another record year in 2025. International confidence is regularly confirmed by bond issues. Most recently, the Hungarian Development Bank's (MFB) EUR 1bn bond issue, with a 4.375pc coupon, drew significant international interest. The government is using Hungary's resources to support families and domestic SMEs, and is working to achieve the highest possible economic growth and to improve the credit rating outlook from the current negative to stable. It is implementing Europe's largest tax reduction programme and has introduced markup caps on food and non-food products, which is expected to further increase household consumption, the ministry said. In order to achieve sustainable GDP growth, the government aims to boost investments through expanding a scheme announced earlier to set up 100 new factories to 150 manufacturing bases and providing special support to domestic SMEs. The Demjan Sandor Programme aims to scale up SMEs with HUF 1,400bn in funding, including grants, preferential loans, a HUF 100bn capital scheme and HUF 130bn support for technology upgrades, the ministry said.
Budapest Times
20-05-2025
- Business
- Budapest Times
Government mandates markup cap on household products to help protect families and pensioners
The National Economy Ministry has confirmed in a statement that the Hungarian government has mandated a 15pc cap on markups on household products in 30 categories to help protect families and pensioners. The ministry said a markup cap on a range of food products has been in place since March 17, helping reduce the prices of over 900 different products by 19pc on average. Monday's expansion of the markup cap will last until the end of summer and apply to product groups such as laundry detergents, washing-up liquids, paper tissues and shower gels. The measure applies to drugstores that sell more than 40pc of household goods, such as DM, Rossmann, Muller, Douglas, Azur, Estee Lauder and Yves Rocher stores. Stores where both food and non-food products are available are not directly affected by the regulation. The government is continuously taking action against unjustified price increases to protect Hungarian families and pensioners and is ready to intervene whenever necessary. It aims to support economic growth by lowering prices and increasing consumption, the ministry said.
