Shifting Paradigms for the Hungarian Economy and the MNB

Abstract

As a res­ult of the fresh, new ap­proaches taken in eco­nomic policy, sig­ni­fic­ant eco­nomic con­ver­gence oc­curred in Hun­gary in the past dec­ade, and a sus­tain­able in­ternal and ex­ternal bal­ance was also achieved. Thus, the for­mula of “bal­ance and growth” was ap­plied suc­cess­fully for the first time in the last hun­dred years. Con­sequently, Hun­gary faced the coronavirus pan­demic and its eco­nomic ef­fects with a strong im­mune sys­tem, and the re­cov­ery was rapid. However, even as the crisis sub­sides, work re­mains to be done: we need to re­store bal­ance and im­ple­ment a turn­around in com­pet­it­ive­ness to re­dir­ect the eco­nomy back to a sus­tain­able path. In the com­pet­it­ive en­vir­on­ment of the 21st cen­tury, eco­nom­ies which are able to har­ness emer­ging in­ter­na­tional mega­trends by ac­cen­tu­at­ing their own strengths will be the win­ners. Over the long term, Hun­gary can be among these win­ners, by cor­rectly as­sess­ing the chan­ging forces and using them to our ad­vant­age, while con­tinu­ously strength­en­ing com­pet­it­ive­ness factors.