Central bank governor Matolcsy warns of looming global economic crisis
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A new global economic crisis is increasingly likely and the government should start formulating a vision for catching up with the more prosperous EU member states over the coming decade, National Bank of Hungary (NBH) governor György Matolcsy said on Monday.
In an article in the online edition of the daily Magyar Nemzet, Matolcsy urged major institutional changes in the structure and operations of the government with a view to preventing Hungary from getting stuck in a “middle-income trap”.
In spite of the economic achievements seen between 2010 and 2019, Hungary’s level of development at the end of 2019 still fell short of the historical high of 1936 when the country’s level of prosperity was closest to that of Western Europe and the average of what is now the European Union, Matolcsy wrote. While Hungary’s level of development in 1936 had been at around 83 percent of the “EU” average, in 2019 it was at 73 percent, he said.
Matolcsy attributed this mainly to shortcomings in the operations of the state and specifically that of the government.
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“Our mediocre economic performance compared with that of our competitors this past decade was the result of a mediocre performance of government,” he said.
Matolcsy highlighted 12 lessons to be learned from the previous decade and the management of the current economic crisis.
He praised the operations of the economy ministry between 2010 and 2013, saying it had been effective in reorganising the state budget and boosting employment. However, he said it was a mistake to shut down the ministry as the centre of the country’s economic policy making and assign that area to the new finance ministry.
A very interesting article.
“Tongue in Cheek” but Fact – what the National Bank of Hungary – Governor – Gyorgy Matolcsy expresses in this excellent article.
Fires a few SALVOS – at the Prime Minister – Victor Orban and his Government – which he explains quite clearly what brings him to the opinions – that he makes in this article.
These are the quality like articles – that need serious attention paid – to what they are saying – that HIGHLIGHT – the Fabrication and Veiling of Fact – that is bombarded out to citizens of Hungary, by the Fidesz Party.
There is a lot going on behind the scene, that will get publicly tabled, that will support articles like this, expand on them, and communicate the Facts of our performance as a country over the past decade, under this present Government.
Could be an interesting cup of morning tea or coffee next time the Governor of the Bank of Hungary meets with Prime Minister – Orban.