Innovation, sustainable growth and the enhancement of the competitiveness of the Hungarian economy are inseparable processes, Mihály Varga highlighted at the conference Sustainability and Innovation organised by Századvég Gazdaságkutató Zrt.
The Minister for National Economy stressed: the Hungarian Government is pursuing the right policy as it started the development of programmes which may help the economy to catch up with the most advanced industrial States years ago.
The Irinyi Plan and the Jedlik Ányos Plan have reached the phase of implementation, the Minister stated, adding that they are additionally setting the direction for the development of the related funding and regulatory programmes as well as the programmes designed to facilitate their implementation. Mr Varga pointed out: Hungary will be successful in international competition if our industry policy, our regulatory regime and the programmes launched or funded by the Government all serve to boost the strengthening of a competitive industrial sector.
We made a move at the right time: Hungarian economic policy is no longer required to concern itself with the management of the crisis, but is free to focus on the acceleration of growth and integration towards the most advanced industrial countries, Mr Varga pointed out. He reiterated that the Hungarian economy has grown dynamically since the 2013 growth turnaround, and employment has increased at an accelerated rate in the past one year. At the same time, economic growth is being achieved in Hungary against the background of the facts that the deficit of the budget is low on a long-term basis, investor perception is positive, and the exposure of the Hungarian economy is diminishing. The Minister said: the Government is expecting a balanced, sustainable and accelerating growth rate also for the next few years, and the growth rate will exceed 4 per cent both in 2017 and 2018.
Mr Varga pointed out: the road to sustainable economic growth leads through the enhancement of productivity, technological developments and capacity enlargement. The Government has taken some important steps in the interest of enhancing competitiveness: by virtue of the fiscal changes introduced this year, both private individuals and businesses may expect a reduction in taxes. The six-year wage agreement concluded in November will boost consumption through a rise in wages, and this will in turn lead to the expansion of the GDP. The transformation of the vocational training system, too, serves to help Hungary catch up with the advanced countries, he added.
(Ministry for National Economy)
