As in the 28 member states of the European Union average industrial output growth did not reach even 2 percent in the observed period, in the month of February 2015, the more than 11 percent growth in Hungary far exceeded the level in Europe, Minister of State for Economic Regulation Béla Glattfelder said at the inauguration of an enlarged production facility of Bourns Ltd in Ajka.

The California-based car parts manufacturer celebrated the realization of a HUF 1.8bn development project aimed to expand an existing site in the Central Hungarian industrial city of Ajka.

Béla Glattfelder stressed that the pace of the industrial sector’s expansion is expected to remain steady in Hungary, as major manufacturing sector companies have recently implemented several development projects, and the outlook for the car industry – pivotal for the Hungarian industrial sector – is especially positive.

According to the latest, preliminary data published by the Hungarian Central Statistical Office (KSH), in March 2015 the volume of industrial output was 11.6 percent higher year-on-year, while calendar-adjusted data show that the sector grew by 9.0 percent in this period. Data adjusted for seasonal and calendar effects show a month-on-month increase of 2.6 percent. In the first quarter, the volume of industrial output was up by 8.0 percent year-on-year.

Béla Glattfelder pointed out that the Government aims to increase the industrial output-to-GDP ratio from the current 23 percent to 30 percent by 2020. It is an important goal, not only because that would improve the country’s competitiveness and increase the number of jobs, but also because those countries had proven to be resilient during the economic crisis that had had a large industrial output-to-GDP ratio, he said.

The Minister of State also said that winners of tenders on industrial capacity expansion projects will be notified in the coming weeks, new calls to tender are to be published soon and EU funding will further expand production capacity at SMEs.

(Ministry for National Economy)