The Hungarian government has launched several programmes to counter the negative effects of global challenges on the economy which could also benefit German-owned companies in Hungary, the economic development minister said at an event organised by the German-Hungarian Chamber of Industry and Commerce (DUIHK) on Wednesday.
Márton Nagy noted that the government had launched the 700 billion forint (EUR 1.84bn) Baross Gábor Reindustrialisation Credit Programme, which gives businesses access to cheap investment and working capital loans. He augured tightening competition for foreign direct investment and said the government needed to maintain existing economic support programmes, while coming up with new ones, too.
The government is drafting a scheme to boost investment activity with the purchase of privately-owned companies, the recapitalisation of existing capacities and the establishment of new businesses, Nagy said. The details of the scheme, dubbed Baross Gabor Capital Programme, will be revealed “within a few weeks”, he added. The minister noted that Hungary had attracted 10 billion euros worth of FDI last year, “even in the face of all kinds of difficulty”.
Nagy said analysts expected Germany to avoid a recession, adding that even if the German economy stagnated this year, that translated as growth of 2 percent for Hungary. He said the government was consulting on a regular basis with industry insiders on what they needed to advance further and had held talks with representatives of pharmaceutical companies already, to be followed by meetings with representatives from the insurance, automotive and shared services sectors.
Source: MTI
2 Comments
Re-?
Hungary… ahm excuse me… The area that covers the current nation of Hungary was always agricultural. The French, the USA and the English went to great lengths to ensure the removal of anything that had natural resources, or industry.
Hungary was only allowed to keep some farmland.
So saying reindustrialize is false. Correctly one should say industrialize.
I assume it was the government that phrased it like that though.
To industrialize the Country the first thing one needs is an educated, skilled workforce. Hungary is losing population at a rate of almost 100,000 per year as a result of low birthrate and massive emigration by the most skilled and educated part of the population. By 2050, Hungary’s population may be as low as 6 million.