Manufacturing capabilities of the domestic chip-bearing ceramic base plates can be built up in the medium term.Continue reading
The most important task for Hungary is to bring inflation down to single digits, restore economic growth, and put it on a sustainable path in the long term, said Economic Development Minister Márton Nagy, representing Hungary at the Competitiveness Council meeting in Bilbao, Spain on July 24-25.
Márton Nagy added that while the government has adopted effective and efficient measures to reduce inflation, such as mandatory promotions and an online price monitoring system, in order to return to and maintain dynamic growth of four to five percent, above the EU average, real wage and consumption growth must be restored in the short term and a turnaround in competitiveness must be achieved in the medium term.
The minister noted that the growth prospects for the Hungarian economy are very favorable.
The turnaround in competitiveness will put the Hungarian economy back on the growth path from 2024 onwards, and enable the continuation of the economic turnaround initiated in 2010, aiming to employ everyone that wants to be employed, increase wages, strengthen families, and at the same time reach 85-90% of the EU development level by 2030, increasing the country’s GDP to HUF 160 trillion (EUR 417 B).
Nagy said that in order to boost competitiveness in a meaningful way, digital and green transformation should be accelerated, i.e. a double transformation of the economy is needed. Energy independence should be further strengthened and electricity imports reduced to zero by 2030.
The transition to Industry 4.0 technologies needs to be accelerated in order to increase the performance of domestic industry, the efficiency of production and the quality of the technology used, and to further strengthen Hungary’s high-tech production,”
Nagy continued.
According to the minister, the efficiency and productivity of the Small and Medium Enterprises (SME) sector should be greatly increased, and to this end, the role of domestic SMEs in supply chains should be strengthened and expanded. In addition, more domestic SMEs should be encouraged to enter the export market.
Extensive economic growth must be increasingly replaced by intensive economic growth, and to this end, the knowledge economy and business R&D and Innovation activities must be significantly expanded.
said the head of the Ministry of Economic Development.
The minister stressed the need to protect families and full employment. Therefore, the employment of guest workers should be managed, controlled, and made transparent, taking into account the trends in the domestic labor market and demographic targets.
The law recently passed by parliament also serves this purpose, stressed Nagy.
The minister stated that
growth cannot be restored without a return to low interest rates.
The reduction of inflation and the emergence of single-digit lending rates can ensure bank lending and a healthy credit market. On exchange rate policy, Nagy stressed that the market should determine the exchange rate. Therefore, any public reference to the level of the exchange rate by economic policymakers is extremely harmful. Such public communication can create misconceptions and expectations, thus unsettling the markets and the domestic business sector, the minister warned.
Featured image: Facebook/Portfolio Rendezvények
