Hungary’s economy minister: Competitiveness key challenge for upcoming years

Budapest, November 3 (MTI) – Improving competitiveness, cutting red tape and taxes and easing the labour shortage will be the key challenges facing Hungary in the upcoming years, Economy Minister Mihály Varga said at an annual hearing of parliament’s budget committee on Thursday.

While Hungary is competitive in terms of exports and the number of working hours, a Hungarian worker produces half as much as a Dutch worker during the same number of hours. Hungary must also improve its ability to attract capital, he said.

Varga said state debt will continue to decline this year and the budget deficit will be below the 2 percent of gross domestic product (GDP) earlier expected. Economic growth is seen at 2.5-3 percent in 2016, he added.

Investors see an improved economic climate and a positive outlook, he said, citing growth and macroeconomic data submitted to parliament in the Final Accounts bill.

Real wages were up by 7.5 percent in January-August this year, Varga said, adding that another rating agency is expected to return Hungary into investment category soon.

Attila Mesterházy (Socialist), the head of the committee, said lack of competitiveness, nontransparent ownership and corruption were “serious problems” in Hungary. He noted that the labour shortage could start a negative spiral in the country’s economy.