MKIK head: foreign guest workers should be employed in a regulated way to strengthen the economy

Hungarian businesses must tap opportunities created by the government, László Parragh, the head of the Hungarian Chamber of Commerce and Industry (MKIK), said at a conference on Monday.

Parragh said the labour market was still tight, but the fact that jobs had been maintained during the crisis had been a boon to the economy.

But migration, he added, was not a solution to domestic labour shortages, and guest workers must be employed in a regulated way, aimed at generating economic growth and stimulating further job-creation.

Foreign direct investment, he noted, exceeded 13 billion dollars last year. Still, cautious consumer behaviour was an obstacle to economic growth, which, he added, was “also reflected in investments”.

At the same time, he welcomed the curbing of inflation and rising real wages.

Parragh said domestic businesses were “in the midst of generational change”, noting the green transition, steps towards energy efficiency, AI and a change in consumer needs as big challenges.

“A future beckons to those that are prepared now,” Parragh said, adding that Hungarian businesses that habitually rely on instinct should switch to gaining a more acute awareness of the market environment.

Concerning European Union funding, Parragh said Hungary had handed over some of its markets so “the country is entitled to the EU funds in return”.

Referring to the international situation, Parragh noted “considerable restructuring between the US, China, and the EU”, adding that “the EU lags behind in this competition more and more”.

Meanwhile, he said Hungary had taken “huge steps” when it came to the automotive green transition, which may “secure a good position for the country”. In the coming period, he said, the country should “find a balance between healthy sovereignty and dependencies that benefit from international transformations”.

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