HungaryTrends: Johnson Electric plans to shut down plant, 4iG acquires Digi Hungary

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

Hungarians are one of the most worst-paid people in the EU

There are huge differences in the cost of labour in some Member States in the European Union. Moreover, this difference is growing year by year. Typically, people are paid much more for work in Western countries than in the East. Read details HERE.

4IG SIGNS DEAL TO ACQUIRE DIGI HUNGARY

Listed IT company 4iG said it entered into a preliminary, non-binding agreement to acquire Digi Hungary from the Romanian unit of DIGI COMMUNICATIONS. The deal is expected to close by September 2021, after due diligence and the signing of a sale and purchase agreement, and pending regulatory approval.

AUTOWALLIS SALES GROW, BUT HIGHER COSTS PUT CAR DEALER IN THE RED

Listed car seller AutoWallis booked a loss of 679 million forints (EUR 1.88m) in 2020 as higher costs and financial losses offset a big increase in sales, supported by acquisitions, an earnings report showed. Revenue rose by 17 percent to 88.4 billion forints, lifted by the launch of its Jaguar Land Rover division, but direct cost of sales climbed at a faster clip, increasing 20 percent to 77.2 billion forints.

JOHNSON ELECTRIC TO SHUT DOWN HUNGARY PLANT

Johnson Electric announced plans to shut down its automotive parts factory in Ózd (N Hungary), which employs close to 800 people, by April 2022, because of changes to market demand. Innovation and Technology Minister László Palkovics pledged the government’s support to maintain local employment levels.

ROLLING AVG JOBLESS RATE REACHES 4.5 PC IN FEBRUARY

Hungary’s three-month rolling average jobless rate reached 4.5 percent in February, edging up 0.2 percentage point from the previous month, but climbing 1.1 percentage point from twelve months earlier, data released by KSH showed. The rate covers unemployment among people between the ages of 15 and 74. Details HERE.

PRENATAL BABY SUPPORT BOOSTS RETAIL LENDING GROWTH IN Q2

Net borrowing by households added 232 billion forints (EUR 643m) to Hungarian banks’ retail lending stock in the second quarter, a year-on-year growth rate of 19.6 percent, supported by prenatal baby support loans as well as lower amortisation due to the repayment moratorium, a report by the National Bank of Hungary (NBH) showed.

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