Hungary continues to draw investments, says finance minister

Tax cuts, a supportive business environment, well-trained work force and good security continue to draw investors to Hungary where the government focuses on investment and development, Finance Minister Mihály Varga told a meeting of Hungarian heads of missions abroad on Monday.

Although the coronavirus pandemic temporarily halted Hungary’s dynamic development, the country’s robust economy has bounced back to growth again by the fourth quarter of 2020, Varga said. As a result, Hungary’s Q4 GDP figures were the fifth best in the European Union, he said.

Despite the pandemic, investments worth a total of 2,500 billion forints (EUR 7.0bn) have been announced in Hungary since the beginning of 2020, Varga said. Rating institutes continue to recommend the country for investment, where corporate tax is the lowest in the EU and tax cuts continued during the pandemic, he said.

Regarding post-pandemic prospects, Varga said restarting the economy was conditional on achieving herd immunity through vaccination. Efforts to procure vaccines and protective gear will therefore “will never face budgetary hurdles”, he said.

Once that goal is achieved, the Hungarian economy may bounce back with a record double-digit growth, Varga said.

Foreign representations have a primary role in restarting the economy and drawing foreign investment to Hungary, he said.