Lasting economic growth could be achieved by Hungary in 2014, with export being the major contributing factor, said Minister of Foreign Affairs and Trade Szijjártó Péter at the conference ‘Export expansion: where, how, what?’, organized by the newspaper Világgazdaság in Budapest this Tuesday.

Szijjártó emphasized that, besides traditional diplomatic tasks, foreign policy shall be focused on serving the economic interests of Hungary.

He pointed out that the expansion of export shall be a priority of the country’s foreign policy, along with attracting as much foreign investment as possible and ensuring success of Hungarian enterprises in foreign markets. Szijjártó Péter pointed out: the objective of the government is that Hungary becomes the EU member state with the highest Exports to GDP ratio (currently ranked second behind Slovakia).

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Szijjártó said that, according to data by the Central Statistical Office (KSH), export amount to around 89% of the GDP. According to Eurostat (the statistical office of the EU), export amount to 97% of the GDP. The goal of the government is to significantly increase the contribution of Small and Medium Sized Enterprises to the Hungarian export.

Szijjártó noted that Hungarian export amounted to over USD 57 billion in the first six months, an increase of 9% compared to the same period last year. He said that four years ago the goal was to turn Hungary into the center of production in Europe, and now it is to attract as much research and development and innovation capacity as possible.

He pointed out that the goal of the government is to ensure that Hungary takes, in the foreseeable future, the leading position within the European Union in terms of contribution of industry to GDP (currently ranked between 3rd and 5th). He said that another objective of the government is to ensure that Hungary has the highest foreign capital inflow per capita in Central Europe (currently ranked second behind the Czech Republic). According to the minister, the full reorganization of the Ministry of Foreign Affairs and Trade is meant to support the expansion of export.

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Szijjártó Péter reminded that the government reorganized the whole foreign affairs and trade system, centralizing all tasks of foreign policy and foreign economy at one single institution. Unprecedented in Hungary, but common practice in several European countries, e.g. Sweden, France and Slovakia.

Szijjártó Péter said that export diversification is important. Currently 80% of export goes into one single economic area, an area with serious problems. Therefore the country has to look for other export markets and also pay close attention to areas with dynamic growth. We have to continuously increase exports to European and North American countries, but, at the same time, we have to open to the East, he added.

Szijjártó said that many factors contribute to the country’s success in foreign markets, including, but not limited to strategic agreements, the turning of HITA into an investment promotion agency, the landing practices of Eximbank, and the network of sales houses. He mentioned that HITA Chairman Berényi János is soon to be replaced by Ésik Norbert, currently working for Nokia, and go on a foreign diplomatic assignment.

(MTI / Ministry of Foreign Affairs and Trade)