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Post COVID-19, Hungary’s promising economic prospects

Oct 29, 2020 - Zoltán Kovács

With a hefty 24 percent growth in foreign direct investment (FDI) from 2018 to 2019, Hungary stood out as a country to watch before the COVID-19 crisis hit. Now, more than seven months after the European outbreak of the pandemic, Hungary’s economic figures and investment potential are once again back on track. Here’s a summary of recent government measures, as well as foreign and domestic investments in Hungary.

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State Secretary Izer: Tax discounts aimed at countering coronavirus impact have already saved Hungarians HUF 62 billion

Jun 24, 2020 - Zoltán Kovács

Among a series of other steps to protect the economy and help Hungarian families get by during the epidemic, the Hungarian government instructed the tax authority to exercise leniency concerning tax-discount applications made as a result of the coronavirus crisis. Thanks to these measures, Hungarian families have, according to a state secretary from the Ministry of Finance, saved Hungarians more than HUF 62 billion so far.

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PM Orbán: Next week’s debate on Hungary in the European Parliament “will be a Soros-style session, election rally and campaign event”

Jan 25, 2019 - Zoltán Kovács

“When it comes to important issues, and we listen and pay attention to the people, we get their answers,” PM Orbán said in this morning’s interview on Kossuth Rádió. Besides the results of the latest national consultation, the prime minister touched upon the upcoming European Parliament’s debate on rule of law in Hungary and George Soros’s efforts to expand his influence in the European Commission.

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PM Orbán: ‘Our goal is that opponents of immigration become a majority in the institutions of the EU’

Jan 10, 2019

The upcoming European Parliamentary elections will be decisive, said Prime Minister Orbán at the government’s first press conference of the year in an opening statement before an extended and free-wheeling Q&A session with domestic and international press. As Hungary remains the only EU state that has asked its citizens directly about migration, these EP elections present an opportunity for the people of Europe to decide about the continent’s future.

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GDP growth and fiscal discipline mean more tax cuts in Hungary’s 2018 Budget

May 09, 2017 - Zoltán Kovács

Back in 2015, the government decided to put the following year’s budget up to vote in the spring session of the Parliament, an important decision to increase predictability and improve planning. This year is no different. Though 2018 will be an election year, the government has held to a tight fiscal policy in the new budget. Continued stability and growth make possible a boost in competitiveness and tax cuts for families.

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With another credit rating upgrade for Hungary no more talk of “unorthodoxy”

Sep 26, 2016 - Zoltán Kovács

In Thursday’s print edition of the Financial Times, following Standard and Poor’s decision to restore Hungary’s credit rating to investment grade, a commentator praises Prime Minister Orbán’s “economic miracle.” Once a staunch critic of Hungary’s “unorthodox” measures to restore its technically bankrupt economy, the British daily’s admiration is the first sign that S&P’s move closes an era of doubts over whether Hungarian reforms are working.

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With unemployment at record lows, Hungary’s economy on Europe’s leader board

Sep 01, 2016 - Zoltán Kovács

Prime Minister Orbán’s economic program sets out a number of ambitious goals. It demands fiscal discipline to keep the budget deficit not only under the three-percent Maastricht threshold but low enough to reduce nominal state debt. It calls for GDP growth to increase from the current level between 2 and 3 percent to a more robust output above 3 percent and sets a longer term goal of five percent. And it aims to create jobs to bring the labor market to full employment.

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New budget: Hungary scores another fiscal goal in the European cup of financial stability

Jun 23, 2016 - Zoltán Kovács

While Hungary’s national football team continues to surprise at the UEFA European Championship, Hungary surprises in another European competition. For the second year in a row, the country accepted next year’s budget during the spring parliamentary session to build on Hungary’s favorable economic prospects in today’s Europe. Next year’s budget is Hungary’s secret formula to advance on its debt-slashing, GDP growth path.

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Here’s why this major credit rating agency is bullish on Hungary and why the others should be too

Jun 01, 2016 - Zoltán Kovács

In recognition of Hungary’s successful efforts to revive its economy, Fitch Ratings upgraded the country to investment grade recently. Although the upgrade came earlier than statistics might suggest, it was no surprise as markets had already priced Hungary’s widely anticipated return to investment grade at multiple credit rating agencies this year. Fitch’s upgrade signals important recognition that Hungary’s reforms are working.

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Hungary’s big increase in funds for research and innovation

May 17, 2016 - Zoltán Kovács

Research and innovation are key factors in many countries’ strategy to boost economic growth, add value to their economies and attract more foreign direct investment (FDI). Hungary has long recognized the importance of its research and development (R&D) sector and, as announced by Prime Minister Viktor Orbán in his speech at the Hungarian Academy of Science, is planning to invest some 1.2 billion HUF (3.8 billion EUR) for R&D until 2020.

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Forbes: Hungarian reforms are working

May 05, 2016 - Zoltán Kovács

A recent installment of the Global Investment Guide, a series published by Forbes, writes on the recovery of the Hungarian economy, noting that Hungary has reported even better than expected results in stimulating economic growth, reducing unemployment and cutting the GDP-to-debt ratio for the first quarter of 2016. Thanks to savvy reforms that work, Hungary’s bonds, equity markets and currency have recovered and are healthy again.

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Every country has the right to decide on its own energy mix, says government commissioner on Paks

Apr 19, 2016

As the project to enlarge the Paks atomic power station continues, Hungary is acting in harmony with the EU’s energy policy considering that the European Commission itself is monitoring the maintenance of nuclear production capacity in the future, the government commissioner responsible for maintaining the capacity of the Paks atomic power station told the Hungarian News Agency MTI on Monday.

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PM Orbán: Hungary celebrates paying off debt, will propose alternative to EU’s quota system

Apr 08, 2016 - Zoltán Kovács

In his regular, radio interview on Friday morning, Hungarian Prime Minister Viktor Orbán said that, on the EU’s quota system, “it cannot be the case that one member state alone makes a decision and the others suffer the consequences.” He also spoke about the symbolic significance of paying off the loan and that Hungary has good reason to celebrate this weekend.

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European Commission Loan to Hungary: Paid in Full

Apr 07, 2016

This week, Hungary made the last payment of 1.5 billion EUR to the European Commission, paying in full a loan taken in 2008-2009 by the previous Hungarian government. With this last payment, said Minister for National Economy Mihály Varga at a press conference on Wednesday, the Orbán Government has taken yet another step toward the goal it set out in 2010 to boost Hungary’s economic stability and financial independence.

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Paks nuclear power plant guarantees low cost energy

Mar 22, 2016

Nuclear power is the cornerstone of secure energy supply in Hungary today, and this will remain so in the long run, declared Miklós Seszták, minister for national development, after visiting the Paks Nuclear Power Plant on 21 March 2016. According to the minister, the nuclear power plant, which operates increasingly efficiently due to improvements, is also essential for maintaining the results of utility rate cuts.

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European Commission’s Country Report Acknowledges Achievements of Hungarian Economic Policy

Mar 09, 2016

At the latest ECOFIN session, EU finance ministers discussed the recently published Country Reports of the European Commission. Outlining Hungary’s standpoint, Minister for National Economy Mihály Varga said that compared to the previous report of 2015, the study is more balanced, and it paints a much more favourable picture of the country’s economic situation. In addition, finance ministers agreed that the number of data exchanged automatically between tax authorities must be increased.

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Hungary Among the EU Countries Most Effective in Reducing State Debt

Mar 01, 2016

The policy of reducing state debt is essential for bolstering economic growth, continuing job creation and the improvement of families’ positions, Minister for National Economy Mihály Varga said at a conference on state debt, organized by Hungarian think-tank Századvég in Budapest. Since 2010, Hungary has achieved the largest reduction of state debt, 8.2 percent, and we are the only country with an intact downward trend concerning the general government debt-to-GDP ratio.

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Budapest Would Like to Strengthen Hungarian-American Economic Relations

Feb 16, 2016 - Ministry of Foreign Affairs and Trade/MTI

Minister of Foreign Affairs and Trade Péter Szijjártó is holding talks in the United States’ second largest state. Negotiations in Texas are primarily centred on the economy, but Hungary’s chief diplomat will also be signing an agreement with the Mayor of Dallas in addition to holding a lecture on current negotiations concerning the free trade agreement between the United States and the European Union.

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Industrial Output on a Sustainable Growth Path

Feb 12, 2016 - Ministry for National Economy

In December 2015, the volume of industrial output grew by 9.4 percent year-on-year, and thus the sector expanded by 7.5 percent in the year 2015. Current data show that the Hungarian industrial sector posted sustainable, balanced growth and now there is a realistic opportunity for Central and Eastern Europe – within that for Hungary – to become the growth engine of the EU, Deputy State Secretary for Economic Development and Regulation István Lepsényi said at a press conference where he presented the Governm

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Agreements on Energy and Transport Development Concluded in Bucharest

Feb 12, 2016 - MTI/Ministry of Foreign Affairs and Trade

Agreements on the facilitation of Hungarian-Romanian energy and transport development projects have been successfully concluded with the new Romanian Government, which has a much more open and pragmatic approach to joint projects that its predecessor”, the Ministry of Foreign Affairs and Trade’s Minister of State for Economic Diplomacy Levente Magyar said on Friday in Bucharest.