Economic data that repeatedly beat expectations are creating an investor-friendly environment among others for large enterprises operating in Hungary, Minister for National Economy Mihály Varga said at the general assembly of the Hungarian Association of International Enterprises in Budapest.
Speaking of the Government’s economic measures the Minister pointed out that after 2010 the Cabinet had to implement structural reforms which have fundamentally changed economic options. “By today it has become clear that Hungarian reforms are working: we can consider it a success that parallel to lowering state debt the country’s vulnerability to external shocks has also improved significantly, and we have managed to keep the fiscal deficit below 3 percent of GDP in each of the past three years,” he stated, adding that “we have good reason to believe that Hungary’s economic performance continues to beat the EU average.” Mihály Varga also called it a key achievement that international companies have successfully participated in and contributed to this process, through improving their performance.
As the Minister noted, the steady FDI flow has been a key factor behind productivity growth in Hungary, technology modernization, a sound growth structure and the creation of new jobs. In the first three quarters of last year, the volume of investment totalled HUF 3400bn, thanks to which the investment rate continues to exceed 21 percent, Mihály Varga said. Hungary’s foreign trade surplus in January-November 2015 was up by EUR 1400 million compared to the exceptionally high level of 2014. Car industry demand has fuelled export growth, but the Government is aiming to reduce the economy’s exposure by supporting other industries. Hungary, for example, has made significant progress in promoting electro-mobility through the implementation of the Ányos Jedlik Plan.
As a sign of their trust, large enterprises operating in Hungary have re-invested several billions of forints of profit in the Hungarian economy. The Government continues to make efforts to turn Hungary into a leading investment destination of the region through boosting competitiveness, creating an investor-friendly institutional background and infrastructure as well as through active investment-stimulating measures, he said.
(Ministry for National Economy)
