Budapest, 22 May 2025 – Over the past decade German companies had played a prominent role in the Hungarian economy’s performance, and thus it was crucial that the German economy regain its strength in the volatile market situation caused by the tariff war, said Mihály Varga speaking at the annual general meeting of the German-Hungarian Chamber of Industry and Commerce. The central bank governor emphasised that maintaining price stability was necessary to create a predictable investment environment and kick-start the economy in Hungary. The new management of the Magyar Nemzeti Bank was committed to ensuring persistently low inflation and a stable financial system.
Governor Varga pointed out that, given the uncertain geopolitical and commercial situation around the world, the most important principles for the new management of the Magyar Nemzeti Bank were stability, independence and transparency. In order to achieve and maintain price stability, the central bank was pursuing a disciplined, consistent anti-inflationary monetary policy. In doing so, it supported the sustainable development of the Hungarian economy and bolstered credibility and trust. The central bank governor recalled that in recent years, the global economy had faced three major challenges. The COVID pandemic exposed the fragmentation of global value chains, while the Ukrainian-Russian war, sanctions and the energy crisis had caused Europe to fall behind in global economic competition. The US tariff war was also impacting the Hungarian economy, as significant uncertainty was undermining investment confidence and dampening international market sentiment. In addition, Hungary was also affected by the tariff war through its economic ties with Germany, primarily via the automotive industry, as Varga pointed out, noting that in 2024, 24.1 per cent of total Hungarian exports went to Germany, while in 2023, direct capital investments from German territories amounted to EUR 20 billion. The central bank governor also said that the significant presence of German companies in the Hungarian economy represented added value that was also important in terms of economic growth. Bearing this in mind, it was in the fundamental interests of the Hungarian economy that Germany return to the path of economic growth, according to Governor Varga.