Hungary is ranked 63th in the Global Competitiveness Report

Out of 140 nations Hungary is ranked 63th on the list of Global Competitiveness published by World Economic Forum. Hungary is the 24th most competitive member state of the European Union just before Cyprus (65th), Slovakia (67th), Croatia (77th) and Greece (81th).
Competitiveness of the European Union worsened to 4.63 points from last year’s 4.74 points. The lag behind the two main competitors of EU is getting larger year by year; out of 12 pillars of competitiveness EU advances Japan only in one (macroeconomic indicators) and the USA by two (macroeconomic indicators + primary education and healthcare).

Economic competitiveness of Europewef2015_Map_en

The 13 new member states reach EU average only on the field of macroeconomic indicators. Several macroeconomic statistics have been performing better in the new member states than in the EU. Although interest rates tend to be higher in CEE countries sovereign credit ratings are much better than in some (mainly Southern) old member states. Despite all, the CEE region is still lagging behind in most factors of competitiveness: innovation capacity, business complexity and the quality of institutional background is much lower. Compared to new member states the number of scientific researchers are low, public safety is insufficient, corruption is high, trade union protection is weak.
Since 2011 Hungary can not advance from the 60th place. Policy instability, corruption and bureaucracy are the most problematic factors. Transparency of government expenditure is also a problematic factor which decreases public trust in institutions. Tax wedge is high compared to rest of the world, the country is not able to keep talented people and income inequalities are also high compared to the stage of development. The ratio of non-performing loans is still high despite lower interest rates.
Kopint-Tarki is the official Hungarian partner of World Economic Forum.