This consultation comes in response to significant global shifts, as Hungary seeks to ensure continued growth and stability in an increasingly challenging environment. As the minister explained, “The world has changed, and Hungary must adapt.”
The new economic action plan is built on three key pillars: boosting purchasing power, providing affordable housing, and doubling the number of small and medium-sized enterprises (SMEs) through the Demján Sándor Program. The government aims to achieve these goals through 21 targeted measures designed to maintain economic growth between 3 percent and 6 percent.
Gulyás emphasized the importance of a work-based economy, noting that employment levels are at an all-time high, with 1.1 million more people employed than in 2010. Preserving and expanding this workforce is crucial, especially as major European economies like Germany face the possibility of recession this year. Despite these external challenges, Hungary remains focused on growth and is actively seeking investments from both Eastern and Western markets to strengthen its economic resilience.
Key measures include negotiating a long-term wage agreement to increase the minimum wage while ensuring economic stability. Gulyás also announced plans to double the personal income tax credit for families, with phased increases through 2026.
Addressing Budapest’s rising housing costs, Gulyás acknowledged the impact of short-term rental platforms like Airbnb and stressed the need for balanced regulatory measures. A national home renovation program and temporary provisions allowing Széchenyi Card funds to be used for home improvements are also part of the broader strategy to tackle housing challenges.
These initiatives aim not only to safeguard economic growth but also to strengthen family support systems and address critical housing needs. By focusing on long-term stability and adaptability, the government is positioning Hungary to remain resilient and competitive in an unpredictable global environment.