Capped Prices Should Be Phased Out As Soon As Possible

"Without EU funds, we cannot restore the country's balance of payments – free of debt – and to break inflation expectations, we need to remove the price caps as soon as possible," said, Deputy Governor of the National Bank of Hungary (MNB), Mihály Patai is quoted by the business news site napi.hu

One of the biggest problems of Hungary's balance of payments is that foreign companies operating here send home an annual amount equivalent to 4% of GDP in profits, and there is a serious shortage of remittances from the 300,000 Hungarian citizens working abroad. This latter process works in Romania and Serbia, but for some reason, it does not work here. Hungarians working outside our borders are probably better integrated into the host societies," Mihály Patai said in his opening speech at the BSE 50 conference, according to VG.hu.

He added that if these measures are implemented, financial balance will be restored without indebtedness and growth will be maintained. According to the MNB, inflation will be above 10% next year and GDP growth will slow down, but remain in positive territory.