At first glance, it may seem that the restart of the Hungarian economy only means that those who closed earlier will open, but in fact more restarts are needed – stated György Matolcsy, the Magyar Nemzeti Bank (MNB) in his blog published on the growth.hu portal on Monday. President.
Photo: Youtube / Economist Wandering Meeting
We need to relaunch the 2020s, the process of economic catching up. As part of the restart strategy, the timeframe and resources for returning to a one-weighted trajectory should be identified, without which the promising catching-up chances of the 2020s will be jeopardized.
He considered the key issue of the restart to be that it is not the old economic structure that needs to be restored, but to break ahead towards the new technological revolution of the 2020s, he noted. The task is not simply to restart growth and catching up, but to build a sustainable catching-up path with the tools and resources for recovery. For this, financial resources are available, the means, and most importantly, effective government programs must be created, he stressed, according to the MTI review.
The Governor of the central bank considers that one of the feats of the Hungarian crisis management in 2020 is that he was able to significantly expand foreign direct investment. The Ministry of Foreign Affairs and the Ministry of Foreign Affairs did an excellent job because not only was there a quantitative increase in the involvement of foreign direct investment (FDI), but also a qualitative shift. Each new investment incorporates world-class new technology into the structure of the Hungarian economy. Similar reversals will be needed in the context of the relaunch in all sectors, so public investment needs to be renewed not only quantitatively but also qualitatively. And that requires a new government structure and operation, he said.
On a sustainable catching-up path, 75 percent of growth may come from rising productivity and 25 percent from expanding employment. Together, these two could result in an average annual GDP growth of 4-4.5 percent. The key to winning the 2020 decade is an increase in the real value of gross value added per capita, and thus an improvement in productivity.
There is great power and a lot of money in the hands of governments all over the world in this decade, so every government should listen to the ancient Chinese wisdom: “the careful, smart and wise use of great power brings good luck,” concluded György Matolcsy.
Source: Napi.hu by www.napi.hu.
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