Index – Economy – Economists sounded the alarm: we are in a trap

Short-sighted economic policy besieged the country – among other things, Laszlo Molnar, CEO of GKI Gazdaságkutató Zrt drew attention. However, Zoltán László, vice president of the Confederation of Iron Guilds, drew attention to this.

According to experts, a few decades ago, after a regime change, it was still a good strategy to compete with cheap labor in order to attract capital, but today it is leading to a decline instead of a rise.

Laszlo Molnar A people talk In response to his question, he points out that there is no one who slowly brings cheap home jobs, the guest worker does not spend his money here, the profit does not stay here, and the GDP is growing only on paper. For example, he mentioned the battery factory being built near Debrecen, which produces about 1.5 percent of Hungary’s GDP, of which only 20 percent will remain here.

He stressed that in addition to supporting multinational companies, the structure of the Hungarian economy is also a problem, as half of the companies with more than five employees are in foreign hands, while there are many very small local companies that lack capital. which does not contain modern equipment.

In his opinion, the current political environment is not conducive to efficient operation either, Laszlo Molnar noted, “If a local company is doing well, sooner or later there will be an ‘irresistible’ bid.”

Education is also lacking

Zoltán László sees the situation in a similar way, reporting that at the turn of the millennium, many experts indicated that it was time to raise the Hungarian education system to a level where higher value-added jobs could be brought into the country.

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This has not happened since then, in fact the opposite is true. We have fallen into the trap of mid-growth economies, from which policy makers cannot escape because of their short-term thinking.

– stated the Vice President of the Federation of Fass Trade Unions, adding that decision makers limit the work inspectionweak environmental regulations, curtailed union rights, voiding labor law, and work-life imbalance.

According to Eurostat, last year Hungary was the third cheapest country in the EU in terms of labor costs, and employers had to spend less than Hungarians only on Bulgarian and Romanian workers.