Hungarian Prime Minister Péter Magyar announced the government’s macroeconomic forecasts and a medium-term fiscal path to 2030 on the Kossuth radio morning programme on Tuesday. The government plans for growth of 2.4 percent next year, with inflation at 3 percent. Growth this year is expected to come in at 1.7 to 1.8 percent.
Deficit and debt path
The budget deficit is forecast at 4.9 percent of GDP in 2027. It falls to 4 percent in 2028, 3.4 percent in 2029 and 2.8 percent in 2030. Government debt is projected at 77.5 percent of GDP at the end of 2026 and 77.2 percent at the end of 2027.
The 2030 deficit figure sits below 3 percent. Earlier government statements had linked that level to a possible euro adoption in 2032. Reuters reported that Magyar named no target date for adopting the euro.
Inflation and consumption
The 3 percent inflation figure is based on a Magyar Nemzeti Bank forecast. Magyar said stronger consumption could push inflation up slightly. He still described 3 percent as a healthy level.
Consumption is supported by public sector wage increases, tax cuts and pension increases, he said. Those measures raise disposable income. The medium-term target is growth above 3 percent by 2030.
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Source: Hungarian Prime
