Wojciech Przybylski: Despite stability of the Hungarian economy, Hungary’s prospects are not optimistic
05.01.2023
Wojciech Przybylski
How would you describe the situation with the economy in Hungary? According to the refusal of the EU to provide funding, what should the Orban government do? How does Orbán’s propaganda affect Hungarians? Wojciech Przybylski, editor-in-chief of Visegrád Insight and head of the Res Publica Foundation in Warsaw, has shared with the Newssky.
Hungary is economically robust with great potential for a skilled workforce and numerous investments from Germany, America, and other European private sectors. At the same time, the government holds a considerable portfolio of state-controlled companies and has been using EU funds to a large extent as a political currency to pay for loyalty rather than the efficiency of production. Additionally, it has been manipulating prices of certain products like oil and basic food products to win elections and maintain popularity. When inflation hit and Hungary agreed to the rule of law mechanisms, the government has been left with fewer options to carry on as before. The uncertainty of the future economic model, lack of EU investment funds soon, and outflow of the young workforce is undermining the economic prospects in 2023.
Government propaganda is influencing the population up to a point when it can also deliver economic performance. One cannot lie the same to its people once they must pay for bread and oil significantly more than before. Orban, therefore, tries to blame external forces for the economic downturn, but that line will not hold for very long.
Maryna Kovalchuk, the Newssky’s own correspondent (Slovakia, Czech Republic, Hungary, Poland), V5 Media project leader, contributed
