Hungary’s Economic Development Falls Behind Romania’s Growth Prospects
Hungarians have long been striving to reach the economic development levels of neighboring countries such as Austria. However, recent data has shown that Hungary has fallen behind countries like Romania, Croatia, and Slovakia in terms of GDP per capita and actual individual consumption per capita.
In a recent article on portfolio.hu, Ákos Péter Bod, a former governor of the Hungarian National Bank and chief economic advisor of PM Viktor Orbán, highlighted the challenges facing the Hungarian economy. Despite previous beliefs that Hungary was more developed than Romania, recent statistics from Eurostat have shattered that perception.
According to the data, Romania now surpasses Hungary in terms of economic development, with other countries like Croatia and Slovakia also ahead. The large state intervention in the Hungarian economy, with the government centralizing 43% of the GDP, has been cited as a major factor contributing to Hungary’s lag behind its neighbors.
Bod suggests that Hungarians should reset their goals and focus on reaching Romania’s level of development instead of aiming for Austria’s. However, achieving this goal will not be easy, with Bod estimating that it may take until the 2030s for Hungary to catch up to Romania.
As Hungary grapples with economic challenges and strives to improve its position in the European economy, it is clear that changes and reforms will be necessary to bridge the gap with its more prosperous neighbors.
Overall, the latest data serves as a wake-up call for Hungary to reassess its economic strategies and work towards a more sustainable and prosperous future.
