Economic Bulletin of the National Bank of Hungary [antikvár]

MAIN ECONOMIC TRENDS IN 1981 In 1981, for the third year running, Hungárián economic policy gave priority to the improvement of the external equilibrium and to the sustention of the living standard subordinating all other economic targets to these major objectives. It was remarkable in the last three years that significant progress was made in the realization of these basic aims: between 1979 and 1981 the totál amount of foreign trade deficit considerably decreased of which the balance of the trade settled in western currencies became active and the one settled in roubles came up to expectations. The export to the western currency areas-despite the recession in the western countries and the discriminatory measures taken by them-increased dynamically in these years and became generally more profítable. As a result of these achievements external indebtedness slowed down. Along with the improvement of the external equilibrium alsó the other main objective could be realized: in spite of an economic environment more difficult than expected living standard of the population could be sustained and living conditions further improved. Results were simultaneously attained in the better harmonization of investments and consumption and alsó in the field of energy and raw-material utilization, these two latter being of special importance due to the country's shortage in these resources. Up to now, the economic regulation system modified as of January 1, 1980 (information thereof was given in the December 1979 issue of the Economic Bulletin of the Bank) generally proved to be well applicable in promoting the realization of the economic policy targets. In the meantime, while maintaining basic principles and main objectives, it became necessary to modify certain elements and limits of the regulation system. These modifícations aimed-with the moderating of exemptions and subsidies in view-at raising efficiency requirements and at improving harmony between national income and enterprise revenues, at regulating according to plans the purchasing power available for accumulation, as well as at accelerating required positive structural changes. (Modifícations took place e.g. in certain elements of the price-, fiscal- and wage regulation system, in somé regulations relating to external economic relations, more active role was assigned to exchange rate policy, slight adjustments have been brought in credit policy terms, etc. The essential modifícations are contained in the annex.) Institutional background of the economic management system was alsó adjusted to new requirements. Somé of the separate branch ministries were amalgamated, their staff being significantly decreased and administration simplified. With a view to make better use of potentialities lying in enterprise independency, several trusts and mediumlevel administrative bodies were wound up (mostly in the food industry) while, on the other hand, a number of small-scale enterprises-formerly belonging to nation-wide or big companies-were given the right for independent activities. (During the past one and a half year's period nearly 150 enterprises got separated from large-scale enterprise