Productivity profile of Hungary

The National Competitiveness Council (NCC) was set up in 2016 and is chaired by the Ministry of Finance.

Various sources: Competitiveness Report 2022 (2022), Productivity differences in Hungary and mechanisms of TFP growth slowdown (2018);

OECD: OECD Economic Surveys: Hungary (multiple), Economic Policy Reforms 2023: Going for Growth - Hungary.

Support skills and mobility to raise labour productivity and facilitate structural change:

• Align skills of vocational graduates with labour market needs and strengthen skills and work experience in vocational education and training.
• Promote the quality of local infrastructure (trains, secondary and tertiary roads).
• Improve rental housing by regulating tenancy to better balance the interest of tenants and landlords.

Promote dynamic and competitive markets:

• Ease market entry and exit in service and network industries by phasing out distortionary sector taxes in energy, finance and retail sectors.
• Subject all mergers that fulfil the merger threshold to full reviews.
• Foster competition in public procurement through the use of the electronic procurement system and enhance transparency.

Promote digital adoption to unlock future growth potential:

• Phase out levies on phone calls and messages.
• Strengthen network competition through auctioning of additional spectrum to expand the number of mobility network operators.