HungaryTrends – The week in business and finance

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

HUNGARY Q1 GDP GROWTH STEADY AT 4.4 PC

Hungary’s first-quarter GDP climbed by an annual 4.4 percent, rising at the same rate as in the previous quarter, the Central Statistical Office (KSH) said in a first reading of data. Adjusted for seasonal and calendar year effects, GDP was up 4.7 percent. KSH said market-based services, especially trade and tourism, were the main contributors to growth during the period.

LABOUR SHORTAGE COULD LEAD TO LOST BUSINESS, JOBS IN HUNGARY

The labour shortage in the industrial sector could force multinationals to postpone capacity expansions or take some of their production elsewhere, a union leader warned. Read more HERE.

THOUSANDS OF NON-EU NATIONALS AWARDED WORK PERMITS LAST YEAR

Almost 25,000 non-EU nationals were awarded permits to work in Hungary last year, around 10,000 more than in 2016.  Read more HERE.

NEW RECOMMENDATIONS ISSUED FOR RICHTER DRUG

The Pharmacovigilance Risk Assessment Committee (PRAC) of the European Medicines Agency (EMA) concluded after a review that Gedeon Richter’s uterine fibroid drug Esmya “may have contributed to the development of some cases of serious liver injury”.

DAIMLER TURNS OUT MORE THAN 190,000 VEHICLES IN HUNGARY IN 2017

German carmaker Daimler turned out more than 190,000 vehicles at its base in Hungary last year, up 4.1 percent from 2016,

Mercedes-Benz Manufacturing Hungary managing director Christian Wolff said. Revenue of the unit, in Kecskemét (C Hungary), climbed by over 4 percent to 3.6 billion euros.

AUDI STARTS SERIAL PRODUCTION OF THREE-CYLINDER ENGINES IN HUNGARY

German-owned carmaker Audi Hungaria announced the launch of serial production of three-cylinder engines at its base in Győr, western Hungary.

The one-litre petrol engines, with power of 63kW or 85kW, will go into Audi A3, Volkswagen Golf, Seat Leon and Seat Ateca models.

FUTUREAL LAUNCHES CONSTRUCTION OF EUR 300 M SHOPPING CENTRE IN CAPITAL

Hungarian property developer Futureal announced the launch of construction of a 300 million euro shopping centre near the southern terminus of Budapest’s number four metro line. Etele Plaza will have 54,000sqm of rentable space with room for 200 businesses. It is scheduled for completion in 2020. Read more HERE.

HYDRO INAUGURATES EUR 21.8 M EXPANSION IN HUNGARY

Norwegian-owned extruded aluminium profile maker Hydro Extrusion Hungary, formerly called Sapa, inaugurated a 21.8 million euro plant at its base in Székesfehérvár, in central Hungary. The company won a 1.2 billion forint (EUR 3.7m) government grant for the investment as well as a 1.5 billion forint tax rebate.

EC STEPS UP INFRINGEMENT PROCEDURE AGAINST HUNGARY OVER SPIRITS TAXATION

The European Commission decided to send Hungary a reasoned opinion — the second step in an infringement procedure — for granting an exemption from the public health tax to fruit distillates, such as palinka, the national eau de vie, as well as to herbal liqueur which are mostly produced domestically. The EC noted that other spirits, such as vodka, whisky, gin and brandy are not exempted from the tax. Read more HERE.

HUNGARY STATE DEBT 74.2 PC OF GDP AT END-Q1

Hungary’s state debt as a percentage of GDP reached 74.2 percent at the end of the first quarter, fresh data released by the National Bank of Hungary showed. The ratio, which includes Eximbank, was up from 73.6 percent at the end of Q4 but down from 76.2 percent twelve months earlier. In absolute terms, Hungary’s state debt stood at 28,044 billion forints (EUR 88bn) at the end of Q1, up from 27,360 billion at the end of 2017.

PAKS II MINISTER NOMINEE SAYS UPGRADE PRICE “FIXED” AT EUR 12.5 BN

The upgrade of the Paks nuclear power plant has a “fixed price” of 12.5 billion forints (EUR 39.3m), János Süli, the nominee for minister without portfolio in charge of planning and implementing construction of two more blocks at the plant, said in a hearing before parliament’s economy committee. Russia is lending Hungary 10 billion euros of the cost and 2.5 billion euros is coming from domestic sources. Read more HERE.

HIGHER REVENUE LIFTS RÁBA Q1 PROFIT

Hungarian automotive industry company Rába’s first-quarter after-tax profit more than doubled to 396 million forints (EUR 1.2m) from 173 million in the base period as revenue climbed, an earnings report showed. Revenue was up 18 percent at 12.4 billion. Domestic sales rose by 28 percent to 3.9 billion forints and export sales increased by 14 percent to 8.5 billion forints.

Source: MTI