National Bank of Hungary Governor Mihály Varga called for closer cooperation among Central and Eastern European central banks to support economic convergence, speaking at a conference jointly organized by the Hungarian and Polish central banks. Slowing foreign capital inflows and rising labor costs require the region to renew its growth model through higher productivity, innovation and economic activities that generate greater value.
Over the preceding 10 years, Hungary and Poland moved 7 and 12 percentage points closer, respectively, to the European Union’s average level of development. However, the region’s reliance on foreign capital and technology transfers makes economic fragmentation and changes in energy supply relationships particular challenges. Stronger corporate competitiveness, investment in education, research and development, and technological innovation could underpin further convergence. Closer regional cooperation could also strengthen the ability to attract international investment.
Central banks’ contribution centers on maintaining price stability and identifying economic risks early, providing a predictable environment for investment and innovation. Persistent geopolitical uncertainty and inflationary pressures reinforce the importance of fulfilling their primary objectives.