HUNGARY will present a package of stimulus measures in the autumn to lift economic growth above 3 percent in the years ahead, Economy Minister Mihaly Varga told a newspaper.

    Hungary’s output rose by an annual 2.6 percent in the second quarter, above expectations but the slowest among regional peers Romania, Slovakia, Bulgaria and Poland.

    Prime Minister Viktor Orban’s government, which faces an election in 2018, is targeting 2.5 percent growth this year, a figure Varga has said is still achievable if headwinds seen in the first six months ease.

    The government has already signaled plans for some form of stimulus measures to bolster the economy and Varga’s remarks indicate the plans are taking their final shape.

    Saturday’s edition of the pro-government daily Magyar Idok quoted Varga as saying that Budapest was working on a number of steps, including employment reforms, in a bid to lift growth into the 3 to 5 percent range in the years ahead.

    Varga also said Budapest aimed to lower unemployment to about 3 percent from the current 5 percent. That low level however also includes 232,200 people employed in public works programs as well as 116,700 people employed abroad.

    The minister said the government aimed to address a labor shortage with unspecified training programs and reforms, adding that investment in pharmaceuticals, chemicals, renewable energy and tourism could also boost the economy.

    Hungary’s economy ministry was not immediately available for comment on the details of the proposed package.

    The planned measures come as the National Bank of Hungary is phasing out a massive Funding for Growth Scheme that provides cheap loans to small businesses via commercial banks. The bank, which next meets to discuss policy Aug. 23, has also said it would not cut its base rate further from a record-low 0.9 percent.(SD-Agencies)