Over the last couple of years, Chinese investments have greatly contributed to economic growth in Hungary, in sectors ranging from cargo transport to battery manufacturing.
Similarly to the budget deficit, public debt is also declining and may drop to below 70 per cent this year. To compare: Hungary’s public debt was 83.6 per cent of the GDP in the second quarter of 2010, the final three months of the Socialist government’s tenure.
Increasing labour productivity is the most important determinant of sustainable, long-term economic growth. More investment, both in human and physical capital and technology, are of paramount importance in order to achieve it.
The massive electric vehicle-related investments that Debrecen has secured over the past year represent a major step in Hungary’s shift toward a more sustainable economic development.
The cost of the war in Ukraine was sky-high even before Moscow started to target the country’s critical infrastructure.
Sanctions that target a whole country instead of specific individuals always hurt the innocent, ordinary people the most. Be these people European citizens who cannot afford to pay their electricity bills, or Central Asians who now live in extreme poverty, generic sanctions punish those the most who are the least responsible.
The UK economy is under great pressure from the sanctions imposed on Russia. Energy prices have soared, and inflation is sky high. putting a strain on the population’s wellbeing. Meanwhile. the government keeps funding Ukraine.
Cooperation between China and the Central and Eastern European countries (CEE) was established in 2012. While at its peak, the initiative comprised 17 CEE states, that number has shrunk to 14, as a result of disillusionment with Beijing over its silence on the Russian aggression against Ukraine, as well as its unkept investment promises.
The main tenets of Erhard’s programme still apply today. Lax fiscal policy and monetary stimulus do not result in long-term, sustainable economic growth. Prosperity is ultimately a result of increasing productivity. Low taxes, low inflation, monetary rigour and the uninterrupted operation of the free market are essential in order to achieve success.
The most recent OECD report paints a grim picture of the European economies’ imminent prospects, but thanks to the government’s strategic crisis management, Hungary is set to outperform all of its regional counterparts.
The issue of fiscal sustainability will determine both the economic and geopolitical future of the Western civilization. The status quo of welfare states might be a huge impediment to that.
Through the adoption of the welfare state, or its more extreme form, the entitlement state, western economies took up huge financial liabilities which might hold serious questions for economic policy in the upcoming decades.
The moderation of Budapest’s role is largely due to the high share of infrastructure related public investments which developed Hungarian regions more than the capital.
Overall, the German automotive industry employs around 50, 000 people in the country and generates 2.5 per cent of the Hungarian GDP. The production value of the industry rose by 165 per cent between 2010-2019, so the influence and significance of the auto manufacturing industry is on the rise in Hungary.
Although it always comes as a shock for people from Central Eastern Europe who lived through state socialism, nowadays in the West there are increasingly more young people who identify as Marxists or even Communists.
Given the increasingly widespread appeal of Marxist beliefs in Western academia, it is important to remind ourselves of what really happened under Soviet-type planned economies.
While some disappointment with capitalism—just like with any system—is completely understandable, the virtues of capitalism must be acknowledged.
The achievements of the last 30 years must not be forgotten nor underestimated – Central Europe, and Hungary in it, have gone through spectacular development which can be observed across all measurements of economic growth.
This article aims to provide a brief overview of the most important milestones of the two countries’ economic cooperation.