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Feb 11, 2020

Central Bank Governor: Hungarian economy must learn the fine art of overtaking on corners

The governor said growth rates are consistently 3 percent above the European Union average and Hungary has again taken the lead in the region from Poland.

Central Bank Governor György Matolcsy has stressed how the Hungarian economy must learn the fine art of “overtaking on corners” to edge ahead of the pack.

Writing for business portal novekedes.hu, Matolcsy said the Hungarian economy was in such a deplorable state in 2010 that it was barely able to enter a demolition derby, let alone the much more important international economic race.

Matolcsy writes that the 2010-2012 period saw major parts of “the car” replaced with stock items, it is what economic history will remember as the impossible feat of achieving growth and stability against the conventional wisdom of growth or stability.

Rmx.news highlights that between 2013 and 2019 the Hungarian economy again reached a level of fitness suitable for regional or even international competition. The governor said growth rates are now consistently 3 percent above the European Union average and Hungary has again taken the lead in the region from Poland.

Matolscy states, however, that 2020 has brought about a radical change in racing conditions: the race ahead is an uphill one, in stormy weather where a single mistake can have dire consequences. But overtaking is possible even under these conditions, provided that we learn the science of cornering and the art of overtaking on corners.

The rules are the following:

1) Only an economy in good shape can negotiate the corners without stalling or slipping out. The Hungarian economy has that.

2) We must prepare for overtaking long before the corner, arrive there at a suitable speed and pass those less prepared.

3) Before the corner, we must know our strong and weak points, to be able to change tactics at a moment's notice.

4) The strengths of the Hungarian economy - political stability, large-scale job creation, attractive to investments and favorable business taxes - must be further improved.

5) The weaknesses of the Hungarian economy - competitiveness, duality, healthcare, demographics, most of higher education, housing policies, capital balance - must be gradually reduced.

6) Mistakes or excessive risks are not allowed.

Read more here.

Photo credit: novekedes.hu