Hungarian minister made it clear when Hungary could introduce the euro
Márton Nagy, Hungary’s economic development minister, said that 2022 was the hardest year after the fall of communism (1990). Energy import jumped to 10 percent of the country’s GDP last year, but Hungary may evade recession in 2023, and by the end of 2023, inflation will be one-digit again.
EURO introduction not far?
The minister said that in 2024, the GDP growth would be around 4 percent again. He highlighted that food prices would peak this February-March, just like the inflation, which will reach 25 percent in January. However, from March, a drastic price decrease might start in the food sector. Afterwards, the government will cease the food price cap scheme.
Mr Nagy said that Hungary could start talking about introducing the euro when the GDP per capita at purchasing power parity reaches 90 percent of the European average. That stood at 79 percent last year, preceding Portugal and Greece, Magyar Nemzet wrote.
Jobless rate in Hungary up
Hungary’s jobless rate was 3.9 percent in December, up from 3.8 percent in the previous month, the Central Statistical Office (KSH) said on Friday.
The rate covers unemployment among people between the ages of 15 and 74. In absolute terms, there were 189,600 unemployed, 3,100 more than a month earlier and 10,700 more than at the end of 2021. The employment rate in Hungary in December was 74.4 percent, 1.3 percentage points higher than a year ago, the KSH said.
The number of employed aged 15-74 in December came to 4,704,000, up 17,000 from the previous year. In the full year of 2022, the number of employed increased by 61,000 to 4.696 million. Commenting on the data, the economy development ministry said the jobless rate have been improving for 7 consecutive months, with the number of jobholders hitting a “record” in December. Youth unemployment fell especially steeply, from 13.5 percent to 10.6 percent, they said.
Labour market tendencies have vindicated government measures targeted to preserve full employment and to protect families, the statement said. Crisis resistance and competitiveness will have to be boosted further in 2023 to avoid a recession and preserve full employment, the ministry said. The government is launching a 700 billion forint credit line to fund companies amid “impossibly” high interest rates, the statement added.
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Source: Magyar Nemzet, MTI