At a business forum of the Joint Venture Association and foreign chambers of industry, Minister of Foreign Affairs and Trade Péter Szijjártó said that the Hungarian model has been established and it works; it means rigorous budgetary policy, economic growth and increasing employment at the same time.
He added that the success of the Hungarian model is proven by numbers: while earlier,, Hungary was one of the tailenders in terms of economic growth in the EU; from 2013 on, the country has shown accelerating economic expansion; in 2014, GDP growth was 3.6 per cent and while in 2010, there were only 1.8 million people working and paying taxes in Hungary, today this index is at 4.1 million.
The Minister said that by March, retail sales increased by 6.5 per cent, volume of industrial production grew by 11.6 per cent and the number of people in employment has reached 4 million 117 thousand.
According to Mr. Szijjártó, the objective of having 5 million people in employment in Hungary – like in the Czech Republic – is a realistic and a necessary one.
In his speech, the Minister explained that the Hungarian economy is an open one, therefore its performance greatly depends on the exports and on the development of investments here.
Hungary uses its foreign policy to “underpin” external economic performance, he said, adding that classical diplomatic activity was not devaluated by anyone: without that, external economic interests cannot be pursued. Mr. Szijjártó explained the three objectives that he has set: to be the first one in the EU in terms of industry’s contribution to GDP and export to GDP, and to have the highest possible volume foreign direct investment per capita in Central Europe.
He also said that in 2014, Hungary increased its export by four per cent in a difficult international climate, and it was able to break records in terms of foreign trade conducted in the case of a number of other countries. Hungary’s export to the US for example has reached USD 3.9 billion, while export to the EU was as high as EUR 23 billion. EU sanctions imposed on Russia, and the Russian embargo have resulted in the fact that Hungarian exports to Russian markets have decreased by 15 per cent, that is, by USD 510 million, and due to the Russian-Ukrainian crises, the country’s export to the Ukraine has decreased by USD 310 million.
Talking about the proposed free trade agreement between the EU and the US, Mr. Szijjáró said that its implementation may bring an increase of export opportunities to Hungarian SMEs.
Concerning the East-and Southward opening, the Minister emphasised that trade with these countries poses an expansion potential for Hungary’s economy and Hungarian companies. He also pointed out that it is not only the expansion of Hungarian exports that is important, but also attracting investors of those countries to Hungary.
The Minister also talked about the importance of combatting terrorism, and noted that Hungary contributes to the success of the fight against the Islamic State by sending a contingent of 150 soldiers to Iraq.
Mr. Szijjártó also emphasised that for Hungary it is important that the EU fincances energy security, linking transport connection and the shift to digital economy from the Structural Investment Funds.
(Ministry of Foreign Affairs and Trade)
