National Bank competitiveness report

The National Bank of Hungary has published its latest competitiveness report in order to analyse, examine and evaluate Hungary’s competitiveness and to explore the possibilities of further progress with over a hundred indicators. One of the conclusions is that there is room for improvement.

The Report confirms the finding of international surveys that further steps are needed in order to improve competitiveness. The turnaround in employment has taken place. In the next phase, the improvement in productivity (mainly of SMEs), wage convergence and the freeing of labour reserves have to be set as targets, with possible contributions, inter alia, from the expansion of non-typical forms of employment and the enhancement of the efficiency of government.

The state can primarily contribute productivity growth by creating a supportive business and regulatory environment, by further easing the burdens on enterprises and labour as well as by the reduction in state bureaucracy. Companies’ financing possibilities have improved considerably in the recent years, but progress is needed in the fields of banking sector efficiency, operating costs and digitalisation as well.

One of the greatest challenges facing the Hungarian economy is to ensure the adequate quantity and quality of available human capital. In education, it is necessary to transfer competitive and marketable knowledge aiming at the further development of basic skills (including knowledge of foreign languages and computer science as well as basic knowledge of finance and entrepreneurship) as well as the ability of lifelong learning and flexible adjustment to changing market needs.

In health care, reforms beyond financing issues in a narrow sense are needed to improve the quality of provision. Efficient improvement may be achieved in the state of health and the number of healthy life years by placing greater emphasis on prevention, for example through the promotion of a healthy lifestyle and the prevention of obesity.