Ministry of Finance: the Hungarian economy proved to be more resilient than the European Union average

English2020. aug. 20.Növekedé

The coronavirus epidemic has reduced the economic performance of the member states of the European Union to an unprecedented extent. Figures show that the decline in Hungary is lower than the European Union average, but still, the Hungarian GDP decreased by 13.6 percent in the second quarter of this year compared to the same period last year, the Ministry of Finance revealed to MTI.

According to the latest data of the Central Statistical Office, the Hungarian economy decreased by 13.6 percent year-on-year in Q2; the calendar-adjusted data were the same, while the seasonally and calendar-adjusted figures showed a13.5 percent decline.

It is pointed out in the statement that Hungary is one of those countries where the coronavirus protection has been the most successful, and the immediate measures that were taken in time were essential in the prevention of the spread of the epidemic and the saving of lives and public health. Prior to the current downturn, Hungary's economy was on a strong footing, with a structurally balanced growth from 2013 onwards. However, the external shock of the coronavirus epidemic temporarily interrupted this expansionary trend.

The statement also notes that the economic output has fallen in many sectors of the economy, which had been performing very well in recent years: industry fell by more than 30 percent on an annual basis due to factory shutdowns in April and May, while the number of guest nights fell by 97 percent in April, for example.

The statement adds that the recovery from the current crisis is being helped by the Economy Protection Action Plan, which is exemplary in European comparison. It amounts to 20 percent of the GDP and its aim is to get the Hungarian economy back on track as soon as possible and achieve around 5 percent growth again next year.

It is due to the fast economy protection measures, among other things, that the decline in Hungary is lower than the EU average: according to Eurostat's flash estimate, the economies of member states shrank by an average of 14.4 percent in Q2. This shows that the Hungarian economy has proved to be more resilient to the crisis than the EU average, the statement of the Ministry of Finance concludes.