Economy
Hungary government to revise GDP forecast?
SME's need support
A key priority for the year 2013 is to assist Hungarian SME's in increasing exports, Economy Minister Mihály Varga said in his keynote address at a foreign trade conference organized by the ministry on Monday.
Talking to foreign trade diplomats, Varga noted that SME's contribution amounted only to 11% of Hungarian exports in 2012, in spite of their key role as employers (two out of every three employees nationwide). National and EU subsidies, along with trade diplomacy, should be used more heavily to improve the share of the SME sector within exports, he added.
Hungary's exports still have the same structure as 3 to 5 years ago. However, the past few years have seen government efforts to implement a new strategy to adjust the structure of exports with the aim of maintaining the level of exports to western countries and opening towards eastern partners, Varga said.
According to the Economy Minister, key foreign trade strategy efforts include increasing export performance, a more balanced export structure, helping SME access external markets, improving the external balance, and promoting foreign investment in Hungary.
A new era of economic growth?
Varga reminded of the government objective to double exports by 2020 in optimistic forecasts, or to boost it to 1.5 times the current amount in a more conservative estimate. The minister said 2013 should be "a year of growth". "Data from the first half of the year indicate that after two years of consolidation we finally have a realistic chance of exceeding growth forecasts which are somewhat pessimistic."
About 75% of Hungary's EUR 80 billion export is to EU countries, however there has been a welcome shift toward new member states recently, Varga noted.
Key priorities for delegates is to present a realistic image of Hungary, facilitate working capical influx, and tapping new markets.
Three months have passed since the submission of Hungary's convergence program update to Brussels, including the latest government prognosis for the cornerstone figures of the economy. The government projected 0.7% GDP growth and 3.1% inflation in 2013. Recent comments by the government suggest that it will be soon time for a revision of the official forecast. Back in late June, Varga stated that the 2013 inflation rate, projected at 5.2% last year which was subsequently lowered to 3.1% in April, may actually be less than 2%.
The next window of opportunity for a review 2013 forecast will come along with the government's 2014 budget planning circular which is to be published soon. Growth forecasts for 2013 average around 0.5%.
A key priority for the year 2013 is to assist Hungarian SME's in increasing exports, Economy Minister Mihály Varga said in his keynote address at a foreign trade conference organized by the ministry on Monday.
Talking to foreign trade diplomats, Varga noted that SME's contribution amounted only to 11% of Hungarian exports in 2012, in spite of their key role as employers (two out of every three employees nationwide). National and EU subsidies, along with trade diplomacy, should be used more heavily to improve the share of the SME sector within exports, he added.
Hungary's exports still have the same structure as 3 to 5 years ago. However, the past few years have seen government efforts to implement a new strategy to adjust the structure of exports with the aim of maintaining the level of exports to western countries and opening towards eastern partners, Varga said.
According to the Economy Minister, key foreign trade strategy efforts include increasing export performance, a more balanced export structure, helping SME access external markets, improving the external balance, and promoting foreign investment in Hungary.
A new era of economic growth?
Varga reminded of the government objective to double exports by 2020 in optimistic forecasts, or to boost it to 1.5 times the current amount in a more conservative estimate. The minister said 2013 should be "a year of growth". "Data from the first half of the year indicate that after two years of consolidation we finally have a realistic chance of exceeding growth forecasts which are somewhat pessimistic."
About 75% of Hungary's EUR 80 billion export is to EU countries, however there has been a welcome shift toward new member states recently, Varga noted.
Key priorities for delegates is to present a realistic image of Hungary, facilitate working capical influx, and tapping new markets.
Three months have passed since the submission of Hungary's convergence program update to Brussels, including the latest government prognosis for the cornerstone figures of the economy. The government projected 0.7% GDP growth and 3.1% inflation in 2013. Recent comments by the government suggest that it will be soon time for a revision of the official forecast. Back in late June, Varga stated that the 2013 inflation rate, projected at 5.2% last year which was subsequently lowered to 3.1% in April, may actually be less than 2%.
The next window of opportunity for a review 2013 forecast will come along with the government's 2014 budget planning circular which is to be published soon. Growth forecasts for 2013 average around 0.5%.
