Hungarian Economy Minister Márton Nagy confirmed that the poor performance of the economy is related to problems with the export of industrial products to Western Europe, mainly to Germany.
Hungary has begun to rely heavily on the demand for batteries for electric vehicles produced in Chinese factories in Hungary, writes Bloomberg.
According to the publication, Hungary’s GDP decreased by 0.2% in the second quarter of 2024 compared to the first quarter, and in annual terms, economic growth slowed to 1.5%, which is significantly lower than the forecast for the second quarter (2.3% was predicted).
It was noted that the economic slowdown is directly due to the fall in demand for batteries for electric vehicles.
Hungarian Economy Minister Márton Nagy confirmed that the poor performance of the economy is related to problems with the export of industrial products to Western Europe, mainly to Germany.
Clear signs of a sinking Hungarian economy emerged after the government introduced new taxes and extended temporary taxes in early July to cover the budget deficit.
It was also reported that in order to stimulate the economy, Hungary is preparing programs to support small businesses in the 2025 budget, and the Hungarian Central Bank intends to reduce the discount rate, which is currently the highest in the EU – 6.75%.
The Hungarian Minister of Economy mentioned that the country plans to achieve GDP growth of 4% by 2025.
It was previously reported that Hungary took a record loan from China.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.