Digitalisation a pathway to reducing poverty, says Hungarian foreign minister in NY

New York, May 18 (MTI) – Digitalisation is not something to be wary of, as it contributes greatly to reducing poverty and improving living conditions, Hungary’s foreign minister said in New York at a UN high-level event on innovation and digital connectivity.

Péter Szijjártó said in his address to the meeting on Wednesday afternoon that a new phase of competition was unfolding in the global economy. Following competition based on tax cuts and infrastructure development, global competition will now turn towards digitalisation, he said. This race will depend on which countries can digitalise their economy the quickest and who will be the fastest to connect production with digitalisation, the minister said.

Innovation is a key issue for the future, he said.

He noted that Hungary has the lowest corporate tax rate in Europe and one of the lowest personal income tax rates. With its extremely dense transportation network in the heart of Europe, Hungary has become Europe’s winner in the competition of tax cuts and infrastructure development.

“Having said that, we will not be satisfied until we become the winners in the European digitalisation competition, and a good basis for this is that high-tech industries now view Hungary as a development centre,” he said. The digital economy already accounts for 20 percent of Hungarian GDP, and 15 percent of people employed in Hungary work in the digital economy, he added. He said Hungary must keep two years ahead of the European digital agenda if it wants to win the European digitalisation competition and attract new ultramodern investments to further accelerate growth.

The minister added that one consequence of the new digital world is that the number of devices connected over the internet will exceed the number of mobile phones in the world next year.