The Government has been aiming to have the EU’s highest industrial output-to-GDP ratio in Hungary. A modern, competitive industrial sector is capable of providing high-paying and stable jobs in production and R&D alike, Minister for National Economy Mihály Varga said, commenting on the latest data released by the Hungarian Central Statistical Office, which show year-on-year output growth of 6.8 percent in the month of August 2017.

As the Minister noted, the sector has managed to post a high growth figure despite a high base. The Ministry’s expecting dynamic output growth to continue, and this expectation is being confirmed by manufacturing and international demand data, he added. The sector’s expansion has been underpinned, besides the funds of the Economic Development and Innovation Operational Programme and tax incentives, by the launch of the Irinyi II Venture Capital Fund of HUF 8bn in September, a scheme designed to bolster the competitiveness of 50 small- and medium-sized enterprises in the industrial sector, Mihály Varga announced.

The Investment Support Programme for Large Enterprises assists the expansion of Hungarian industrial enterprises making products of high added value. This year, projects that can be linked to the objectives of the Irinyi Plan and the Industry 4.0 scheme are to be given priority in the programme financed from domestic funds, he said.

In the period January-August 2017, industrial output grew by 5.1 percent year-on-year. Industrial sector data compiled since the beginning of the year are in line with the prior estimates of the Convergence Programme. Improving global economic outlook and the sharp rise in the volume of manufacturing sector investment, 16.6 percent growth year-on-year which indicates higher output in the medium term, are encouraging signs. In light of these factors, the sector’s growth momentum is expected to persist in coming months, the Minister noted.

(Ministry for National Economy)