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Sustainability changes from one age to another, a new generation of thinking is needed for growth – said Barnabás Virág, Executive Director of the National Bank of Hungary (MNB) at a press conference on the presentation of the report on growth. András Balatoni, director of MNB, added: this year's report is twice as high as last year, which is not a coincidence.
Economic policy plays a key role in economic policy, "said András Balatoni. Large-scale reserves need to be used in the SME sector. There is a need for another tax reform, an effective country and infrastructure.
Internal savings are also an indispensable condition for sustainable growth.
With them, we can reach the level of development of Austria by 2030.
The key to Hungary's long-term growth is that it originates from the trap of the middle income trap – the Economists of the National Bank of Hungary (NBH) predict in the Growth Report. The former convergence goals have approached the offer, while now using a demand side we use a comprehensive approach.
The extensive growth path must be intensive, and employment can not be extended for a longer period of time, and the capital-intensive trend of productivity suffering must be shifted.
Photo: Zoltán Vémi
Successful competitiveness is based on a comprehensive knowledge of megatrends that shape the world economy, which can be the starting point for our country. Successful convergence over the past decades has been characterized by the development of capital intensive development, which would be beneficial in Hungary.
If the reforms are not realized, the overall factor productivity remains at the level of moderate traps. The level of investment needs to be stabilized with a minimum rate of 25 per cent, while full employment must be maintained.
The potential growth of GDP at the middle level is 1.5 percent, and after reforms, 4.5 percent. The doubling of net real wages can be expected by 2030, with a 31 percent reduction in the number of pounds to 9 percent and a reduction in contributions.
The equilibrium budget is also available on the path of reform, i.e. The state must not finance development, and the banking sector has great potential for this. It is important that savings in the real economy are not consumed.
Three important mechanisms have been identified to ensure sustainable growth: the size of SMEs, the status quo and demography – explained András Balatoni.
Small and medium-sized enterprises should have six percent growth, so a 2 percent increase in large companies is enough to catch up. Due to economies of scale, 80% and 230% of SMEs are overproduction, which means a merger with significant productivity increases.
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