Hungary’s economic growth is projected at 3% this year and exceed the EU average in 2016, Minister for National Economy Mihály Varga said in an interview. The government is sticking to 2.5% deficit target and its inflation target of 1.6%.
The growth rate of around 3% and stable inflation are signs that the government’s reforms are working, he said Of the possible risks, he noted the impacts of the FED's rate hike and low oil prices that are weighting on emergin market economies and could have an impact on Hungary indirectly. Last year the percentage of the black economy was curbed to 20-22% of the GDP from around 30% as a result of the government measures. The Electronic Trade and Transport Control System would be fine-tuned next year, with more businesses drawn into the scheme that will boost revenues. The fiscal impacts of the reduction of VAT on new homes will be assessed in the first half of the year, he noted.
