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Hungarian competitiveness improves

June 25th, 2022

A conservative economist suggests that Hungary’s improving competitiveness is the result of the government’s pro-growth policies. According to another leading analyst, Hungary is unlikely to catch up with EU average wages anytime soon.

Magyar Nemzet’s Csaba Szajlai takes the Swiss IMD competitiveness ranking as proof that the government’s efforts to boost Hungarian competitiveness have been successful. The conservative economist recalls that according to the IMD’s recent report, Hungarian competitiveness improved significantly due to low taxes, reliable infrastructure, a dynamic economy, a well-trained labour force and advanced digital administration. As a result, Hungary has been ranked as the most pro-business country in Central and Eastern Europe. All this, Szajlai contends, is a clear validation of the government’s and the National Bank’s economic policies.

On Portfolio, economist István Dedák ponders whether Hungary stands a chance of reaching EU average wage levels by 2030, as outlined by Minister of Economic Development, Márton Nagy. Dedák recalls that in 2010, Hungary stood at 66 per cent of EU average wages, while by 2021 it had climbed to 76 per cent. This increase, however, results from the higher activity rate, Dedák adds, noting that productivity has not increased significantly. While more people work, the difference between Hungarian and EU per capita average wages has increased since 2010, Dedák points out. In light of this, Dedák seriously doubts that Hungary can catch up with EU wages, as Minister Nagy would like people to believe.