According to the latest data compiled by the Institute for Management Development (IMD) of Switzerland, Hungary advanced five places on this year’s competitiveness ranking, Minister of Finance Mihály Varga said at a press conference earlier today. Along with improving macro-economic statistics, international competitiveness rankings and valuations by economic stakeholders also confirm that a trend reversal has taken place with regard to Hungary’s competitiveness.

IMD, the management school and economic think-tank, publishes an international competitiveness ranking each year focusing on four main areas: economic performance, government efficiency, business efficiency and infrastructure, and within these twenty special criteria are examined. In this year’s ranking, Hungary has advanced five places to rank 47.

DownloadPhoto: Ministry of Finance

Hungary’s competitiveness has improved in the majority of factors evaluated by the IMD study, and this reflects the results of recent economic policy measures, he stated. Thanks to the six-year wage agreement, Hungary has gained nine places in terms of tax policy competitiveness. Prudent fiscal policy has helped us advance by seven places concerning public finances, Mihály Varga pointed out.

Sound economic growth has helped us jump twenty places regarding the domestic economy. The 12-place improvement the country has achieved in the category productivity and efficiency shows that economic stakeholders – partly driven by economic policy incentives – began raising productivity and this is one of the preconditions for improving the country’s international competitiveness, he added.

DownloadPhoto: Ministry of Finance

The study highlights skilled labour, dynamic economic growth and a competitive tax system as the key drivers of Hungary’s competitiveness.

After the country’s ranking improved by nine places in a similar ranking by the WEF last autumn, now another major international survey has come to a similar conclusion, the Minister noted.

DownloadPhoto: Ministry of Finance

Aiming for even better results, the National Competitiveness Council, which had aptly recognized the fields and initiatives through which the country’s competitiveness could be significantly improved even in the short term, is to resume work. The National Assembly has already adopted a number of regulatory amendments initiated by the Council which were designed to bolster the country’s competitiveness and improve public administration services. The Council is to continue to discuss economic policy challenges vital for the competitiveness of the Hungarian economy, identify fields where further action must be taken and table concrete recommendations, the Minister of Finance stressed.

(Ministry of Finance)