Heritage Foundation: depressing opinion about the Hungarian economy

According to the conservative foundation, the most serious problems of the Hungarian economy are corruption and the enrichment of businessmen close to the government. For example, as we already reported, former gas fitter and PM Viktor Orbán’s friend Lőrinc Mészáros collected a more significant fortune in only three years than Habsburgs had 90 years ago. According to hvg.hu, Hungarian state news agency (MTI) only reported about the positive side of the foundation’s 2018 index of economic freedom.

The Hungarian economy improved – states MTI

According to Heritage Foundation’s index, Hongkong became the freest economy of the world again. Compared to the previous year, Hungary obtained a better position – states MTI.

In fact, the institution close to the Trump-administration examined various factors of economy and gave points between 0 and 100 to countries based on the results. It reviewed the state of commerce, enterprises, tax system, government expenses and monetary politics. Moreover, it studied investments, labour market, financial services, property rights and corruption in the countries of the world. A higher number of points means less governmental interference into the economy.

According to their ranking, there are six free economies: Hongkong, Singapore, New-Zealand, Switzerland, Australia and Ireland. These countries have more than 80 points.

Estonia leads the group of mostly free countries while the United States is also in this category.

Hungary is only in the category of the moderately free countries

together with, e.g. France, Turkey, Kosovo, Rwanda or Botswana.

The country has 66.7 points; this number is 0.9 points higher than it was in the last year. Thus, Hungary could step forward from the 56^th to the 55^th position this year.

What MTI did not write about – the Hungarian economy is bleeding from a thousand cuts

The Hungarian state news agency omitted relevant information describing the exact situation of the Hungarian economy.

Firstly,

Hungary’s economy is the 20^th among the EU-countries.

To make matters worse, Romania is 18^th while Bulgaria is 12^th.

Furthermore, compared to the last year, Hungary’s position has worsened in most of the factors examined. For example, the state of copyright, the integrity of the government – getting only 36.4 points out of the 100 – tax burden,

business, monetary and commerce freedom got lower points than they did a year before.

Moreover, the institution states that ‘judicial independence remains under threat.                                       

Cronyism and corruption are serious concerns,

as illustrated by the difficulties experienced by business owners who have fallen out of favour with the government and the failure to investigate corruption by high-level government officials.’

However, judicial effectiveness, government spending, investment and labour freedom developed according to the foundation.

Not surprisingly, the last position on the list belongs to North-Korea with 5.8 points which means a 0.9 points increase. Venezuela and Cuba reversely follow the Far-Eastern communist dictatorship.

Photo: The Heritage Foundation official Facebook page

Source: hvg.hu