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Productivity Profile of Hungary

 

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The National Competitiveness Council, under the Ministry of Finance, provides analysis on productivity issues.

  

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OECD: Economic Surveys Hungary (multiple).

  

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HUN productivity growth graph‌ 

 

Click here to access our Compare-Your-Country tool and explore productivity data from the GFP member countries.  

  

 Latest OECD Recommendations

 

Productivity growth has been low since the global financial crisis, in sharp contrast with the rapid growth prior to the crisis. The productivity slowdown reflects the intensive use of public work schemes and the inclusion of low-productivity workers. Nonetheless, structural weaknesses are important and include low productivity and innovative activity in the business sector, reduced competitive pressures, and weak labour market dynamics. Broad structural reforms are needed to secure more competitive firms and an adequately skilled labour force, through more pro-competitive regulation and more effective labour market and education policies. In particular, a comprehensive SME strategy could increase economic dynamism and inclusiveness.

  • A more dynamic business sector requires cutting red tape and better use of regulatory impact assessments to improve transparency, stability and formulation of regulatory policies;
  • Enhance competitive pressures by removing sector exemptions from the competition law and only allow anti-competition mergers on clear and explicit public interest grounds;
  • The effectiveness of training programmes in public work programmes should be enhanced to facilities the employment of participants on the primary labour market;
  • Improved vocational training and lifelong learning would, together with better links between the education system and the labour market, bolster the inclusion of weak labour market groups and promote productivity;
  • Existing skills could better used by promoting a better work-family balance, including measures to increase the supply of child care and better incentives for paternity leave.

 

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