There has been little increase in public debt
He who says otherwise lies
Eurostat has published statistics on sluggishness in liberal circles. In the second quarter of 2020, Hungary's public debt as a share of GDP barely increased, as we increased our indebtedness in the fourth lowest proportion among the EU member states. The crisis hurts everyone, but we have been much more prepared for the crisis, with economic growth of 5% the previous year, wage growth of 10%, public debt declining for 10 years, foreign currency loans getting rid of, and could still be listed. The government was foresighted, and as a result, we were not forced into IMF credit and other lifebuoys. Not incidentally, now 4.5 million work and "produce", in 2008 that number was 3.8 million.
Our government debt-to-GDP ratio increased by 3.2% compared to the second quarter of 2019 and by 4.6% compared to the first quarter of 2020. The same figures represent 8.1% and 8.4% respectively in EU aggregates.
We are good not only in this indicator, but also in terms of the general government deficit. Our deficit rose from 4% in the first quarter of 2020 to just 9%, while the EU-27 deficit rose from 2.6% to 11.4%.
These are also very good results because, in the last two weeks of the first quarter of 2020, we put the economy on fire for almost the entire second quarter to protect against the first wave of the coronavirus epidemic. Nevertheless, we have suffered a lower GDP decline than the EU average.
The value of the results is increased by the fact that many countries were more at risk during the first wave, not introducing strict restrictions similar to ours. Everyone struggled with an unknown enemy, but not all lives seem to matter in many countries. Since then, we have identified the enemy, we can fight without a complete shutdown, so we expect even better economic indicators in the future.