The fact that foreign companies operating in Hungary have given the most optimistic responses in years to questions concerning their business plans, the investment environment and the Hungary’s economic outlook for 2016 confirms the adequacy of Government measures, Minister of State for Economic Development and Regulation István Lepsényi said at an event of the German-Hungarian Chamber of Industry and Trade (DUIHK), as the organization published the 22nd investment climate survey, based on the responses of the Chamber’s member companies and foreign investors on inquiries about Hungary’s economic situation and business environment. The paper shows the best balance of positive and negative opinions since 2005.
Stronger real economy and improving business environment – this is the conclusion of the DUIHK survey of 2016, which highlights the strengths and weaknesses of the Hungarian economy. German and foreign investors are highly upbeat about the current situation and this year’s outlook. Although the survey points out that that the satisfaction of enterprises have improved in several aspects, it also emphasises that the shortage of skilled labour has worsened. DUIHK predicts economic growth of 3 percent for 2016 in Hungary.
Upbeat expectations are also reflected by bolder investment and employment plans: 38 percent of enterprises project higher investment compared to last year, while 43 percent of them plan to add to their labour force. In both cases, manufacturing companies in general and large, export-oriented manufacturers in particular intend to expand. As a whole, confidence improved considerably with regard to economic policy factors, such as legal certainty and predictability, but also – to a lesser extent – concerning tax burdens and tax administration.
The quality of infrastructure and labour regulation were again among positive factors. The majority of investors are satisfied with domestic suppliers, but it is noteworthy that within the manufacturing sector almost one in three companies are dissatisfied (last year’s figure was 24 percent). As far as the commitment of investors is concerned, 80 percent of them would again opt for Hungary as investment destination, which figure is significantly higher compared to last year’s 71 percent.
(Ministry for National Economy)
