EC Hungary Country Report 2020

Executive Summary

Hungary’s robust economic growth offers a valuable opportunity to engage in important structural and institutional reforms to sustain durable growth over the longer term.In recent years, Hungary has experienced a strong economic expansion with one of the highest GDP growth rates in the EU. Employment has also risen quickly. Hungary’s future economic development depends on the economy’s capacity to increase productivity, which requires a move away from the model based on low labour costs towards a knowledge-based, sustainable economy producing advanced products. Structural and institutional reforms are also needed to ensure the optimal allocation of resources. The current good economic environment creates an opportunity to address the main challenges of the economy, in particular related to the shrinking working-age population, low productivity growth, increasing inequalities and low efficiency of natural resource use. Full report