New economic strategy proposal to be submitted in May

A policy proposal for a completely new economic direction is being drafted with the involvement of the central bank and the chamber of industry and commerce (MKIK), the daily Magyar Idők said on Wednesday. It is expected to be ready for government consideration in May.

MKIK President László Parragh said levels of redistribution will change but fiscal prudence will be maintained. The efficiency of the state needs improvement, he added.

The process of narrowing the wage gap will need to be speeded up possibly by amending and expanding the six-year wage agreement signed in 2016, Parragh said.

Industrial production needs to be boosted by applying state-of-the-art digital-based development strategies. Further, challenges in the labour market need to be addressed, he said. Whereas in 2010 unemployment posed a risk to growth, currently this is down to a shortage of skilled workers. In addition to higher wages, more emphasis needs to be placed on training and life-long learning, Parragh added.

Source: MTI