German enterprises operating in Hungary, which have steadily expanded production capacity in the country, substantially contributed to the achievements of the Hungarian economy in recent years, Minister for National Economy Mihály Varga said at the annual general meeting of the German-Hungarian Chamber of Industry and Commerce (DUIHK). The Minister stressed that feedback by German enterprises was having a great weight in Hungary’s economic policy.

Speaking of the Business Climate Report on Hungary published by DUIHK, the Minister pointed out that German companies which have participated in the survey were upbeat concerning their experiences, and 45 percent of respondents plan to add staff in 2017.

Compared to results one year ago, investors were also more confident about the state of the Hungarian economy, their own position as well as the economic outlook. Mihály Varga said it was another encouraging sign that investors have turned more positive with regard to formerly harshly criticized issues, for example in the field of public administration, taxation and legal certainty.

Mihály Varga noted that Germany continued to be Hungary’s number one trade partner in 2016; the more than 3000 German enterprises operating in Hungary employed some 190 thousand people in the country, and thus they were the largest employer group in Hungary. Germany is also on top of Hungary’s foreign investor ranking with a share of 22.4 percent, and the partner with the highest number of Hungarian subsidiaries, he said.

The findings of the survey, he added, confirm the Government’s expectation that the Hungarian economy may see remarkable economic growth exceeding 4 percent of GDP this year and next.

(Ministry for National Economy)