Shocking: Hungary has almost no chance of reaching the economic development level of Romania
Before, the Hungarian administrations regularly said their aim was to reach the economic development level of Austria. Hungarians supported that enthusiastically. In 2004, when Hungary joined the European Union, one of the main campaign slogans was that all Hungarians would be able to open a confectionery in Vienna. Instead, in the last 20 years, even Romania preceded Hungary.
Hungarians behind Romania, Croatia, Slovakia
Ákos Péter Bod, the former governor of the Hungarian National Bank between 1991 and 1994 and a chief economic advisor of PM Viktor Orbán in the 2000s, wrote an article to portfolio.hu with some serious claims about the problems of the Hungarian economy.
In his article, Mr Bod argued that Hungarian society thought about Hungary as a country more developed than Romania. The Hungarians accepted that the “capitalist” European countries like Austria are more developed than their country. The society even accepted that former Socialist countries like the Czech Republic or Slovenia are also on the brighter side of the European economy. However, they believed Hungary was more developed than Romania.
And that is when the 2023 GDP per capita was released and erased that reference point. The new data showed that Romania preceded Hungary according to the Eurostat. Croatia, Slovakia, Latvia, Greece, and Bulgaria remained behind Hungary.
Actual individual consumption per capita in Hungary is even worse
Mr Bod said it was hard to compare the two countries’ economies. The economy professor cites the so-called actual individual consumption per capita, a factor regularly used in international comparison. It shows the consumption level a country provides for its citizens. And Hungary was in very bad shape in that regard, even in 2022, the year when the Orbán government transferred lots of money to the people to win the elections. For example, they gave back the whole amount of the personal income tax to the families raising children. That meant thousands of euros extra for families where both parents work.
According to the data of the Eurostat, Hungary is among the Balkans countries in that regard. It precedes only Bulgaria in the European Union.
Romania’s advance is considerable: 86% of the EU average, while Hungary is at 71%. And Bulgaria is almost there, as well, with 69%. Croatia stands at 76%, with Slovakia at 77%.
Hungary can reach only Romania’s level, but only in the 2030s
Among the reasons for Hungary’s lag, Bod mentions the large state. The Hungarian state centralizes 43% of the GDP, while that rate is only 33% in Romania. The Hungarian state’s intervention in the economy has expanded a lot lately. And the Ministry of National Economy does not want to change that. What’s more, the Hungarian government would like to increase state intervention concerning investments in the future.
The large state is a Hungarian speciality and not typical in our development category, Mr Bod concludes.
He also says that Hungarians should forget about reaching the Austrian development level. Instead, we should focus on reaching Romania. But we only have an opportunity to do so by 2030 at the earliest.
Read also:
- Surprising: Romania more developed than Hungary, and people may live better – read more HERE
- Cheap real estate: Romanians move to Hungary, own half the houses in this town
Fidesz calls itself right-wing but it engages massively in socialist policies of state control of industries that cause inefficiency, higher costs, deficit financing and a failed economy. All the social policy is right-wing – the homophobia, the rabid crusade against migrants, etc. This brief article is key to explaining the complete failure of Fidesz to improve the lives of Hungarians. The one thing it fails to explain, however, is why Fidesz constantly involves itself in state control of industries rather than let free enterprise create an efficient market. The answer to that is what every corrupt Fidesz politician wants to keep hidden from Hungarians and if you don’t know what it is you better start listening to Magyar Péter.
Hungarian GDP is bad enough. People need to ask why Hungarians come so much lower on individual personal consumption compared to a somewhat higher level on GDP per person in EU rankings. More wealth is being produced than is being consumed in Hungary. Where is the difference going? It goes to the Fidesz mafia. Wake up Hungarians. You could ask if the difference is going to gross household savings. Gross household savings declined massively since 2021 and still Hungarians are consuming less. On top of that the state has engaged in massive deficit financing so ask yourself where all this money is going while Hungarians barely consume more than Bulgarians. To bring about these conditions the corruption has to be absolutely massive.
Concur – Larry, but of course, what you write, and you in your position know, this is just the “tip” of an iceberg, that the IDIOTIC Political Ideas and Philosophy – Ideology of Victor Mihaly. Orban and his Fidesz Government what over the course of 14 plus years, right in our FACES daily, growing into a cataclysmic Financial & Economic disaster, is Hungary, through this present FAILED, Disgraced and Humiliated government, what they, under Prime Minister – Victor Mihaly. Orban and his Fidesz Government – have DELIVERED Hungary.
Appalling / Humiliating – that NEEDS urgent action, or a “salvage process” what maybe LEFT for us, to see the possibility, a “flickering of light” giving us as a country of a FUTURE – Hungary.
Orban – his Fidesz Government, I will not entertain the thought of a FUTURE for Hungary, for MILLIONS of Hungarians, whilst the name of the current Prime Minister of Hungary, and his Fidesz Party, hold positions of POWER not just Political, but throughout the entire spectrum broadness of Hungary.
Fidesz have continuously DEMONSTRATED they are LEECHES, sucking taking out of the Economy – out of the taxes of the citizens, that NEVER, in 14 years plus, been DEMONSTRATED to us Hungarians that through INVESTMENT from our taxes, put back into Hungary, to improve build on better across the board – Education, Hospitals, Public Health, Public Services & “other” – to bring about improved Quality of Life for ALL Hungarians, just not the “Suckers” in mass – that are Fidesz Party supporters.
We know the FRAUD that has occurred with funding recieved by Hungary, from the European Union, that Orban and his Fidesz Government, have been, through the Courts of Justice of the European Union – been judged of GUILT.
The Minister of Finance – Mihaly Varga – remains factually – being a cataclysmic catastrophe in his Ministerial Portfolio, and will NEVER be able to REPAIR through his ill-conceived Policies “hare brained” ludicrous and farcical – repair the Damage, the Destruction, his Policies have inflicted on Hungary.
PRESSURIZATION that grows internally in Hungary, and being FELT, that GROWS externally being “heaved” on Hungary – through the name of Victor Mihaly. Orban, has NOT reached the Zenith, of what, when it HAPPENS, will be of greater impact, to what happened in 79AD.
Orban – the Fidesz Government – have NO Money for INVESTMENT back into civilian life and the NEEDS of Hungarians, excluding, those who support Fidesz.
Where is MONEY going to be GENERATED produced, without increasing FURTHER borrowing – Debt to Hungary – the citizens of Hungary – where is MONEY for GROWING numbers of Investment citizens projects – projects of NEEDS – where is investment going to come from – FUNDING availability ???
Don’t fool ourselves that Russia or China – are going to INCREASE – there BANKERS roll(s) to the Orban – Fidesz Government – without asking the question AGAIN, repeat again – what’s in it for us – Prime Minister of Hungary – Victor Mihaly. Orban ???
This opinion of Victor Mihaly. Orban, just ESCULATES in its factuality of the MESS he personally finds himself in, his Fidesz Government and SADLY millions upon millions of INNOCENT Hungarians.
Orban, has taken a massive un-reversable now a “U-turn” position, away from the aim of Hungary becoming a market economy, based on the Rule of Law and private ownership, but INSTEAD, driven and introduced as part of his FAILED creeds and ideology, the systematic DESTRUCTION of the fundamentality practices of DEMOCRACY in Hungary.
Hungary – we are in DEEPENING Troubled times, our Nadir un-known, and our MESSIAH, is not Victor Mihaly Orban, this Fidesz Government.
It is hardly a bit surprising that Hungary’s individual consumption per capita is so low, hence its economy is so stagnant and sinking, considering Hungary has the unenviable reputation of having the world’s highest rate of Consumption/VAT/Goods & Services (call it what you will) tax! While this persists, Hungary’s economic development will be severely retarded, compared to its neighbours!
Well, Keep re-electing the bandits and you will fulfil being the poorest most miserable Europeans!