Sustainable Growth in the Hungarian Economy

The rate of economic growth in Hungary did not change significantly during its first year of membership in the European Union; it remained about two percentage points higher than the average of euro-zone countries. This pace could be considered as a significant achievement, if our balance of trade and payments as well as the central budget did not show a considerable deficit. Both, the persistent imbalances of present and recent past, and dragging reform of large distribution systems, require asking the question: What should we do to maintain our economic development in the long term, so that it would not encounter balance constraints? The Economic Convention of the Hungarian Association of Economists discussed these questions in 2005. In addition to the usual econo-political lectures, tasks originating from the Lisbon Strategy of the European Union – competitiveness, social and economic cohesion, increase of employment – also came into the spotlight at the meeting. There was a common consent that the key to restore the balance of the central budget is to reform the state oranization structure and public services. This, however, cannot take place without a reduction in the number of public employees. Promotion of development and rollout of the information society has been on the agenda in the European Union for a long time. The session on information technology covered relevant national achievements, positive examples, and future tasks.