Márton Nagy: the duality of the economy must be resolved

By: Trademagazin Date: 2024. 04. 09. 11:04

The duality of the Hungarian economy must be resolved, the foreign and Hungarian property present in Hungary must function together and in an integrated manner – emphasized National Economy Minister Márton Nagy at a conference in Budapest on Tuesday.

At the two-day event called the Competitiveness Conference 2024, the head of the ministry said: in the Hungarian, open economy, a dual structure has developed in addition to a strong foreign working capital inflow (FDI inflow) and investment rate. The share of foreign ownership is 50 percent, and it must be achieved that they do not work separately, but together with Hungarian companies – he emphasized. As a solution, he mentioned the connection of domestic companies to production chains, and said that the share of domestic first-round, direct and second-round suppliers – classified as tier1 and tier2 – should be increased to 50 percent.

He mentioned that the labor productivity of Hungarian-owned companies is dynamically improving, but foreign-controlled companies operate 2.5 times more efficiently. The rise of domestically owned companies has been seen since 2010, the most significant in the fields of tourism, catering, banking, food production, construction, and telecommunications, he explained. The export sales of Hungarian companies increased significantly, in 2022 they already exceeded a quarter of all corporate exports.