HungaryTrends – The week in business and finance

See below main business and financial news from the previous week:

DIRECT FLIGHTS TO BE ANNOUNCED BETWEEN BUDAPEST AND SEOUL IN 2019

South Korean low-cost airline will launch flights to Budapest, to the Balkan and to Eastern Europe. Read more details HERE.

EUROPEAN PARLIAMENT HOSTS INTERNATIONAL CONFERENCE ON WAGE UNION

Meeting in a conference called “Equal Pay for Equal Work”, economists, professors, experts, Members of the European Parliament and trade union leaders discussed such issues as the income gap in the EU, the problems of competitiveness, the benefits and drawbacks of labour mobility as well as how the demographic crisis affects the labour market. Read more details HERE.

SK INNOVATION TO BUILD EV BATTERY PLANT IN NW HUNGARY

South Korean SK Innovation will build a plant making lithium batteries for electric vehicles in Komárom (NW Hungary). The company plans to start construction in February 2018, test operation is due to begin in summer 2019, and commercial production from January 2020.

THE PRICE OF THE HUNGARIAN SOIL IS HEAVILY INCREASING

The price of soil in Hungary has increased by 10% in 2016. The value of the Hungarian soil has surpassed the level of the previous year by 11.2 % thus, on average, 1 hectare of land in Hungary was worth around 1.22 million forints (4,067 euros) in 2016. That is what is revealed by the Soil Index of TAKARÉK.

CHINESE PREMIER LI KEQIANG ARRIVES IN BUDAPEST FOR 16+1 SUMMIT

Chinese Premier Li Keqiang arrived in Budapest on Sunday ahead of a summit with the heads of government of 16 countries in the region. The China-Central and Eastern European countries (China-CEEC) summit was held next day.

CHINESE OBSESSION AROUND FLATS IN BUDAPEST

The demand for Hungarian flats in China was increased by 40% compared to last year. Potential Chinese buyers search for flats in Districts II and III for 54-80 million HUF, and in Districts XIV, XVI, XVII for 47-69 million HUF.

TENDER FOR BUDAPEST-BELGRADE RAIL LINE UPGRADE PUBLISHED

The deadline for the submission of tenders or requests to participate is January 19, 2018 in a two-phase tender Hungary called for the upgrade of the Hungarian stretch of the Budapest-Belgrade rail line. The contracting entity is Chinese-Hungarian Railway Nonprofit Ltd, the tender invitation, published on the website of MÁV shows. Read more details HERE.

BSE TO INTRODUCE MORTGAGE BOND INDICES

The Budapest Stock Exchange (BSE) will launch three mortgage bond indices, unique in the region, from December. The indices — the BSE Mortgage Bond Total Return Index (BMBX Total Return), the BSE Mortgage Bond 3 Year Yield Index (BMBX Yield 3Y) and the BSE Mortgage Bond 5 Year Yield Index (BMBX Yield 5Y) — are being introduced in cooperation with the National Bank of Hungary (NBH).

AROUND 25.6PC OF HUNGARIANS POOR OR AT RISK OF SOCIAL EXCLUSION, SAYS KSH

In 2016 there were 2.46 million people in Hungary who were either poor or at the risk of social exclusion, some 25.6 percent of the entire population, a summary of household living standards data published by the Central Statistical Office (KSH) shows. Data shows that the share dropped by 0.7 percentage points compared to 2015.

Q3 INVESTMENT GROWTH REACHES 18.3PC

Investments in Hungary rose an annual 18.3 percent in the third quarter, lifted by growth across all sectors with the exception of water and waste management, the KSH said.

BANKING SECTOR PROFIT CLIMBS 19PC IN Q1-Q3

The combined after-tax profit of Hungary’s banking sector rose an annual 19 percent to 495.8 billion forints (EUR 1.58bn) in Q1-Q3, lifted by higher commissions and the lower bank levy, data released by the National Bank of Hungary (NBH) show.

OECD RAISES HUNGARY GDP GROWTH FORECASTS

The Organisation for Economic Co-operation and Development (OECD) raised GDP growth forecasts for Hungary in its biannual Economic Outlook. The OECD raised the forecast for this year to 3.9 percent from 3.8 percent in the previous Economic Outlook released in June. It raised the forecast for next year’s growth to 3.6 percent from 3.4 percent.

HUNGARY JOBLESS RATE FALLS TO 4.0PC – KSH

Hungary’s rolling average three-month jobless rate dropped to 4.0 percent in August-October from 4.1 percent in the previous three month period and 4.7 percent in the same period a year earlier, the KSH said.

HUNGARY SEPTEMBER TRADE SURPLUS REVISED UP TO EUR 937M

Hungary’s September trade surplus was revised upwards to 937 million euros in a second reading of data released by KSH. In the first reading KSH had put the September surplus at 928 million euros.

Source: MTI