Hungarian FM: Record many German companies plan to increase investment in Hungary

More German companies plan to increase their investment in Hungary and employ more Hungarians than ever before, Foreign Minister Péter Szijjártó said during a visit to Sofia on Friday.

Commenting on a recent survey by the German-Hungarian Chamber of Industry and Commerce (DUIHK), Szijjártó told MTI by phone that the German companies’ level of satisfaction and their willingness to invest in Hungary had always been very important to the Hungarian economy. More than six thousand German companies operate in Hungary, employing a total of over 300,000 people, he added.

Of all foreign countries, Germany has the strongest influence on the performance of the Hungarian economy, he said.

More than half of German companies plan to increase investment in Hungary and two-thirds plan to employ more people, “which means more Hungarian people will get work and more Hungarian families will have secure livelihood, more Hungarian companies will get stronger and Hungarian exports will grow significantly,” he said. Around 27 percent of Hungarian exports are directed to Germany and external factors, such as investment and exports, have a basic influence on Hungary’s economic growth, he added.

Compared to the past 12 years, the proportion of German companies satisfied with the environment in Hungary is currently the highest, at around two-thirds, he said. 

“German-Hungarian economic cooperation is a success story which supports the sustainability of Hungary’s economic growth path and the increase in the number of workplaces in Hungary,” Szijjártó said.

About 68 percent of some 100 companies surveyed by DUIHK said the position of their business is “good”, up from 55 percent in a survey conducted in the spring.

The percentage reached the highest level since 2005.

About 52 percent of respondents expect their positions to improve, while just 4 percent augur a deterioration.

About 56 percent plan bigger capital expenditures in the coming twelve months and 61 percent expect to make new hires, up from just 40 percent and 45 percent, respectively, in the spring survey.

Source: MTI