Hungary government ready to intervene in economy to offset virus impact - minister

Hungary's government is ready to intervene in the economy to offset the economic impact of the spread of the coronavirus, Finance Minister Mihaly Varga said on Tuesday. "The economic consequences will be much longer-term, than its human impacts," Varga told a business conference, adding that the budget had adequate reserves to tackle the economic difficulties.

"We are prepared to help economic players with an intervention in the economy...if the crisis deepens," Varga said. The government reduced its economic growth forecast to 3.5% from 4.0% earlier this year, partly due to the impact of the spread of the coronavirus globally.

Varga said the 2020 budget was planned with a 1% deficit and sufficient reserves. He said tourism would soon be affected by the global spread of the coronavirus. Varga also said close cooperation was needed between fiscal and monetary policy in order to boost economic growth.

Hungary has 12 confirmed cases of the coronavirus as of Tuesday, according to the government's official website.