We can already check four of the five conditions necessary for the restoration of development.

Economic growth will start again next year: after this year's 2.5 percent, a 4.1 percent expansion is expected in 2025, the Minister of National Economy said on Wednesday in Debrecen, at the first stop of the national business development event series "With your business - Everything you need to know about the future".

Márton Nagy emphasized that for growth, consumption and investments must be restored, labor market activity must be increased, lending and export activity must be improved.

In his presentation to entrepreneurs at the headquarters of the Hajdú-Bihar Chamber of Commerce and Industry, the head of the ministry said that the success of the electric transition in the vehicle industry is essential for the Hungarian economy.

According to his words, four of the five conditions necessary for the restoration of economic development can already be ticked off, that's where the shift can be seen.

First of all, he mentioned the recovery of consumption: according to February data, retail trade and food consumption picked up, and there was a 15 percent increase in tourism, primarily in the field of domestic travel.

The situation with investments is similarly encouraging: so far the processes have slowed down due to the decrease in consumption, but we can already see the revival, and the multinational companies are completing the developments, so in Debrecen, for example, production can start next year at the BMW car factory and the CATL battery factory, he listed.

He added: the labor market has also moved, activity among 18-34-year-olds and the elderly has also increased. We need new workers, but basically we don't need guest workers, but Hungarian workers, so inactivity can also decrease, said the minister, adding that he would like to increase the current 80 percent employment rate to 85 percent.

Márton Nagy also mentioned the restoration of credit among the efforts that can be ticked off, where, in addition to state programs, market lending has also started.

At the same time, the Minister of National Economy sees a problem in the field of export activity, where there was a significant drop of eight percent.

He said: something has happened in the European vehicle market, "the transition to electric cars is slowing down".

According to his description, the proportion of electric cars in China is 33 percent, in the EU 15 percent, and the biggest slowdown occurred in Germany, where 12 thousand people from the Tesla factory are on the street.

The essential element of the Hungarian economy is electric cars, so that the transition can be successful, as quickly as possible, and there will be no reversal - he referred to the production of electric cars and batteries.

He said, "Germany and Hungary are in the same shoes", it is our common economic interest that the electric transition gains new momentum and that the slowdown is only temporary.

According to the Minister of National Economy, for this purpose, the three actors must be encouraged at the same time: the state, the manufacturer, and the individual who buys the electric car.

He emphasized that the infrastructure needs to be developed for this, hundreds of thousands of electric charging stations are needed in Europe. He noted: China was able to develop production, network and charging stations at the same time, in which Europe is completely behind.

Europe seems to have forgotten to build a network - said the minister, who says that the European electric car strategy is missing, and this is the most important economic issue for Hungary, which will be given new impetus during the Hungarian EU presidency.

In developing the strategy, we must listen to the car manufacturers, we must compete with the Chinese, but we must not introduce a Chinese protective tariff, he stated.

In Márton Nagy's presentation, he covered in detail the situation of the corporate credit market, as well as support and credit schemes that help small and medium-sized enterprises (SMEs).

MTI

Cover image: Minister of National Economy Márton Nagy gives a lecture at the first stop of the national business development event series entitled "With us for your business - Everything worth knowing about the future" in Debrecen
Source: MTI/István Derencsényi