Tehran Chamber of Commerce, Industries, Mines and Agriculture is sending a business delegation from Iran’s private sector to Budapest, Hungary, on the occasion of holding the Iran-Hungary Economic Commission next month.
The delegation will comprise representatives of a wide range of industries, including agriculture and food, mining, construction materials, tourism and transportation.
The delegation will be visiting the Eastern European country from Nov. 15 to Nov. 19, the news portal of TCCIM reported.
Hungary is a member of the Organization for Economic Cooperation and Development with a very high human development index and a skilled labor force
OECD expects GDP growth to slow to 4% in 2022 and 2.5% in 2023. Domestic demand will be the main growth driver. The labor market is expected to remain tight, continuing to put upward pressure on real wages. Together with high food and energy prices, this will keep headline inflation elevated until the end of 2022. Thereafter, inflation is projected to recede slowly, reflecting a slowdown in domestic demand as fiscal and monetary policy tighten. A major risk is that a combination of stronger wage growth and continued high energy prices could further de-anchor inflation expectations.
The Covid-19 pandemic interrupted the strong economic growth performance in 2016-19, which entailed large increases in employment and real incomes, and the lowest unemployment rate in 30 years. The swift vaccination rollout allows a faster recovery from the pandemic from mid-2021 onwards.
However, the strength of the recovery is uncertain, reflecting the potential scarring of the economy arising from the prolonged crisis. Looking further ahead, population aging will lead to a smaller and older workforce, reinforcing the need for improving the productivity performance of the economy to restore the impressive employment and income gains achieved before the pandemic. In the near term, underutilized labor resources, such as low skilled workers, need to be mobilized through higher labor mobility and skills upgrading.
Thereafter, maintaining productivity growth requires improved vocational and tertiary education, more competitive markets and faster adoption of new technologies, particularly to accelerate the digital transformation of the economy.
These policies should be implemented alongside measures to promote green growth and prepare public finances for the long-term fiscal challenges associated with population aging.
