In the first half of this year, investments worth more than HUF 4,000 billion were implemented in Hungary; these are a meaningful contribution to the country’s spectacular growth. The government’s measures seeking to promote investment, the utilisation of EU funds, the success of the housing programme, Hungary’s economic policy and the positive business environment which attracts investments to the country all played a prominent role in an expansion in the magnitude of almost twenty per cent.

The dynamic growth of investments in the national economy continued in the 2nd quarter of 2019: developments worth HUF 2,400 billion in total represent an 18.8 per cent growth compared with the corresponding period of last year, and a 4.1 per cent increase on the first quarter. Dynamic growth rates were recorded in 15 sectors out of 19. A 31 per cent increase in corporate developments and a 15 per cent increase in machinery procurements play a determining role in the favourable figures. Parallel with this, there was a 30 per cent expansion in the processing industry, and an increase above 22 per cent in the case of construction projects related to real estate developments and infrastructure projects. These factors combined clearly indicate that the investments of domestic businesses continue to grow dynamically, encouraged by the government’s measures which promote the utilisation of EU funds for the development of the economy, the enhancement of employment, the housing of Hungarian families, the simplification of the administrative burdens of businesses and the reduction of taxes.

Statistical data shows that in the Hungarian economy there is a high production capacity utilisation rate which projects a long-term increase in investments and GDP. This is confirmed and reinforced by projects recently announced in the private sector to the value of more than HUF 3,000 billion, accounting for 8 per cent of Hungary’s GDP. As a result of the government’s economic policy seeking to promote growth, the Hungarian investment rate has been continuously on the rise since 2017. In light of the latest data, this could be as high as 27 per cent which places Hungary in the vanguard of EU Member States, well in excess of the average of the Visegrád countries. These positive processes are expected to continue also in the future, to which the already implemented measures of the Economy Protection Action Plan and the investment incentivising elements of the competitiveness programme will equally contribute.

(Ministry of Finance/MTI)