Latest news with #NationalEconomyMinistry
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.
Budapest Times
28-04-2025
- Business
- Budapest Times
Government submits 2026 budget draft to Fiscal Council
The National Economy Ministry said the budget draft, "built on peace", contains Europe's largest tax reduction program and prioritises support for families and pensioners, while calculating with significant pay rises. The Hungarian government submitted its 2026 budget draft to the Fiscal Council on Thursday. The National Economy Ministry said the budget draft, 'built on peace', contains Europe's largest tax reduction program and prioritises support for families and pensioners, while calculating with significant pay rises. In a message on social media, National Economy Minister Márton Nagy said the draft budget earmarked HUF 4,800bn in support for families, adding that doubled tax allowances would leave HUF 290bn with families raising children, up from HUF 80bn in 2025. Households will get around HUF 800bn in support in the form of subsidies for the regulated utilities price system, and they will get a further HUF 800bn in interest payments on retail government securities. Some HUF 450bn has been earmarked for bonuses for Hungarians in uniform, and resources have been allocated for double-digit pay rises for public sector workers in smaller settlements. In line with Hungary's commitment to keep defense spending at 2pc of GDP, HUF 1,900bn will go toward upgrading the Hungarian Defense Forces. Around HUF 4,900bn will be spent on economic development, including HUF 2,200bn in European Union funding. Windfall profit taxes will remain in place in some sectors, while tax preferences for boosting headcount and spending on R+D will rise. The budget is calculated with 4.1pc GDP growth and 3.6pc average annual inflation. The primary deficit — excluding the cost of debt maintenance — is set at zero. The general government deficit target is 3.7pc of GDP, while state debt is set to fall to a year-end 72.3pc of GDP from 73.1pc at end-2025. The government will submit the budget bill to lawmakers on May 6, after the Fiscal Council issues its opinion on the draft.
Budapest Times
31-03-2025
- Business
- Budapest Times
Hungarian pensioners will get an average top-up of HUF 39,600 in November
The National Economy Ministry noted that pensions had been raised by 3.2% in January, corresponding to the government's assumption for average annual inflation. The National Economy Ministry said on Friday that Hungarian pensioners will get an average top-up of HUF 39,600 in November to compensate for higher than expected inflation. The ministry noted that pensions had been raised by 3.2pc in January, corresponding to the government's assumption for average annual inflation. That assumption has been raised to 4.5pc, and the 1.3pc difference will be paid to pensioners, retroactively, in November, it added. By law, pensions must be adjusted to the rate of inflation to preserve pensioners' purchasing power. The November top-up for Hungary's 2.5 million pensioners will add up to HUF 91bn.
Budapest Times
28-03-2025
- Business
- Budapest Times
National Economy Ministry: There are no short or long-term risks regarding Hungary's state debt
Contrary to a report published by the European Commission, the National Economy Ministry said there are no short or long-term risks regarding Hungary's state debt. The ministry said in response to the EC's Debt Sustainability Monitor report that the government is committed to fiscal discipline, including reducing public debt. The ministry said the fundamentals of the Hungarian economy are stable, the FX composition and ownership structure of the public debt are sufficiently diversified, and the financing of state operations is secure and stable. This is also reflected in the ratings of credit rating agencies, which continue to unanimously put Hungary in the investment grade level, reflecting unwavering confidence. The ministry said that continuing its earlier practice, when planning the 2026 budget, the government is calculating with a decreasing deficit and decreasing public debt. The ministry noted that in November 2024, the EC forecasted that the state debt level in Hungary could reach 74.5pc of GDP at the end of 2024, while in fact the actual figure could have been significantly lower. Thus, the EC's forecast could have shown a significant difference even in such a short term. In its report, the EC said that as a baseline scenario, Hungary's gross debt ratio as a share of GDP could be at 74.5pc both in 2024 and 2025, decrease to 73.7pc in 2026 and climb to 74.2pc in 2027. The National Economy Ministry said that overall, its position is that the findings in a report of the EC cannot be supported by factual data.
