Productivity growth has been low since the global financial crisis, in sharp contrast with the rapid growth prior to the crisis. The productivity slowdown reflects the intensive use of public work schemes and the inclusion of low-productivity workers. Nonetheless, structural weaknesses are important and include low productivity and innovative activity in the business sector, reduced competitive pressures, and weak labour market dynamics. Broad structural reforms are needed to secure more competitive firms and an adequately skilled labour force, through more pro-competitive regulation and more effective labour market and education policies. In particular, a comprehensive SME strategy could increase economic dynamism and inclusiveness.
Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.
OECD (2016), “Bolstering business sector investment” and “Enhancing skills to boost growth”, in OECD (2016) OECD Economic Surveys HungaryMay 2016, OECD Publishing, Paris.
Halpern, L., M. Koren and A. Szeidl (2015),"Imported Inputs and Productivity.", American Economic Review, 105(12): 3660-3703.
Productivity - enhancing institutionsThere is no single institution dedicated to productivity in Hungary. The Ministry for National Economy, among others institutions, provide analysis on productivity issues.