The value of investment in the first three quarters of the year totalled HUF 4 144bn in Hungary, which figure shows an increase of 22.6 percent year-on-year, Minister for National Economy Mihály Varga said, commenting on the latest investment data published by the Hungarian Central Statistical Office (KSH).

The combination of investor-friendly measures, such as the 9 percent corporate tax rate and lower payroll taxes, as well as steadily improving business environment has had a visible effect; Hungary’s attractiveness for capital investment has increased.

In the third quarter, the value of investment gained HUF 1596bn, up by 18.3 percent compared to the previous year, the Minister noted. Growth has also been driven by corporate capacity expansion projects and construction sector projects generated by the Government’s housing programme, he pointed out.

The Minister also remarked that investment growth was taking place in a sound manner: investment increased in eighteen out of altogether nineteen economic sectors.

Investment volume in the manufacturing sector, the largest industrial sub sector, soared by 14.4 percent in the third quarter, thanks mainly to the performance of the automotive, electronics and electric appliance industries, Mihály Varga said. The 17 percent increase in construction sector investment and the 20 percent investment growth at machinery manufacturers were also significant factors, he stated.

The Government is expecting the strong growth momentum to persist, as the positive trend is seen to be underpinned by development projects in both the private and the public sectors.

(Ministry for National Economy)