National Economy Ministry to boost SMEs and tourism sector

Small and medium-sized enterprises are a major pillar of Hungary’s economy.

In line with a government decision to further boost Hungary’s economic growth, the national economy ministry is preparing two action plans by Sept 30 to support the domestic SME and tourism sectors further.

On Monday, Márton Nagy, the national economy minister, said that small and medium-sized enterprises are a major pillar of Hungary’s economy, accounting for 99% of all domestic businesses and employing 72% of all domestic employees, the ministry cited Nagy as saying. Those companies ensure the living of millions of Hungarian families, he said. Nagy said those companies were key to Hungary’s competitiveness, and strengthening their effectiveness, productivity and performance was imperative. The ministry’s action plan for SMEs includes proposals on financing programs and incentives to support investments and provide cheap loans, in addition to reducing administrative burdens, which will support and accelerate their green and digital transition.
The other action plan is to boost Hungary’s strategic tourism sector which provides more than 10% of the country’s GDP and gives jobs directly or indirectly to some 400,000 people, said Nagy. Its central component is a significant development of Budapest’s recently re-purchased international airport by the state, the minister said, adding that the goal was to increase the airport’s capacity to handle 20 million passengers. Boosting tourism in the countryside is also an important objective, Nagy said. He noted that the government aimed to raise the number of guest nights spent at tourism accommodations in Hungary to 50 million by 2030 while boosting the sector’s contribution to GDP from 10% to 16%.