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Parragh: "Hungary's Economy is not Overheating"

2019. május 10.

In an interview, broadcast by Kossuth Rádió (Hungary’s leading public service broadcaster) yesterday, HCCI President László Parragh challenged the European Commission’s warning about the dangers of an overheated economy in Hungary.  Mr. Parragh agreed that there are indicators which may raise concerns, like high wage growth, increase of consumption and inflation. „The government pursues an anticyclic policy. Economic growth is based mainly on domestic resources when external conditions are expected to get worse”  he explained.

The president also spoke about the lack of available workforce. „In earlier years low wages helped Hungary to attract foreign investments. But even today, in terms of average wage level, Hungary is still far behind the other contries of the region. If we want to keep the Hungarian work force at home, companies have to increase wages. Without the improvement of efficiency, however, this may prove a tall order.”, Mr. Parragh warned. 

The HCCI has an important role to play in the government’s plans to introduce reforms in the vocational training system. Post-graduation technical colleges will be re-established (a few years ago they were replaced by vocational secondary schools). „The curriculum is essential but without a well developed infrastructure, state-of-the-art technical conditions  it would be difficult to recruite students” Mr. Parragh said, and he added: „To create the appropriate educational environment, we need the financial and technological assitance of the companies. They have to invest more in human resources if they want to run a competitive business”, the president concluded.