industrial

German car parts manufacturer creates 720 jobs with EUR 140m investment

Szijjártó german car manufacture

German company group Rehau Automotive has invested 50 billion forints (EUR 140m) in a new polymer car parts manufacturing plant in Újhartyán, in central Hungary, which is creating 720 new jobs, the minister of foreign affairs and trade said on Tuesday.

Péter Szijjártó told the opening event that there had been strong international competition for the investment because the Rehau group is present at some 190 locations in more than 60 countries around the world, the ministry said in a statement.

In addition to completing the plant in Újhartyán, the company is building a new manufacturing unit in Győr, in north-western Hungary, as part of the same project, he said.

The state has supported the investment with 7 billion forints which resulted in the company’s largest and most modern plant built in Újhartyán, he added.

The investment further increases vehicle production in Hungary which employs 160,000 people and reached production value of around 9,400 billion forints last year, Szijjártó said.

Hungary is currently among the twenty largest car industry exporters and exports of car bumpers tripled in recent years, he added.

The coronavirus pandemic resulted in economic and health crises in the past two years around the world but the Hungarian crisis management model has proven a success, he said. Thanks to a fast vaccination campaign, Hungary was able to reopen around two months before the European average, he added.

Economic performance returned to the pre-crisis level by last summer and a “triple record” was set, with record high investment, employment and exports reached in 2021, Szijjártó said. Cooperation between Hungary’s economy and the German car industry has played an important role in this, he added.

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Read alsoBruce Willis renews contract with Hungarian brand

Turkish Sisecam receives €1.8 million grant from Hungarian state

A signal achievement of the past 10-12 years is that the Hungarian economy is supported by multiple pillars and many of its sectors are globally competitive, Péter Szijjártó, the minister of foreign affairs and trade, said in Aszód on Tuesday, announcing an investment by Turkey’s Sisecam Group which manufactures glass products for the automotive industry.

The country’s economic diversity has helped it overcome the global economic crisis, Szijjártó said.

The foreign ministry noted in a statement that

the government is providing a grant of 650 million forints (EUR 1.8m) in support of Sisecam’s 3 billion forint (EUR 8.3 m) development to be completed by the end of this year, adding 100 jobs.

Szijjártó said at the event that coronavirus-related restrictions had cost the country 10-15 billion forints each day, so reopening the economy two months ahead of competitors had been of huge significance and contributed to the country’s investment record and annual growth of over 6 percent.

The minister said

the government has launched “one of the biggest investment promotion schemes ever”, with 290 billion forints given in support of 30 industries with a view to boosting competitiveness.

Noting that car-making is the “backbone of the Hungarian economy”, he said that it was instrumental that suppliers should increase their capacity. Sector output in the first 11 months of last year totalled 8,700 billion forints, while car-making provides 160,000 jobs in the country, he added.

Turkey, he said, is a “strategic partner and friend” of Hungary. Bilateral trade turnover grew by 15 percent in 2021, and was worth 4 billion euros, he added.

In 2021, Sisecam announced a new 73 billion plant in Kaposvar, creating 329 new jobs.

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Bruce Willis renews contract with Hungarian brand

hell energy drink bruce willis

We can expect to see Bruce Willis as the face of the Hungarian energy drink brand for two more years. The Hollywood star has once again renewed his contract with Hell.

According to StoreInsider, Bruce Willis is known to be a regular Hell consumer. However, it is not only due to the fact that he has been working with the Hungarian brand for four years now. The legendary American actor still regularly asks for a refill of his energy drinks, and he possesses, for example, the one-billionth can that Hell sold, which he holds in high regard.

hell energy drink bruce willis
Source: kreativ.hu

This time, the 66-year-old actor is looking even cooler for the cameras. With this, the energy drink brand aims to attract the younger generation more than ever before. Krisztián Schmidt, Creative Marketing Director at Hell Energy, said the following about the new campaign:

“Hell Energy’s goal is to rejuvenate its target group, and Bruce Willis will play a huge role in this over the next two years. Much cooler pictures have been captured of the American actor than ever before. I think the results speak for themselves!”

As StoreInsider wrote, the leading Hungarian energy drink brand is proud that Bruce Willis always keeps a good dose of Hell in his home fridge. Last year, the actor was filming his latest action movie in Georgia, USA, when he realised he did not have enough of his favourite energy drink. With the Hungarian energy drink unavailable in the area around the small American town where he was filming,

Willis had his private jet flown back to New York to bring him a supply of Hell from his home stack.

hell energy drink bruce willis
Source: kreativ.hu

Still in top form, Bruce Willis’s latest “discovery” from the Hell portfolio is a product called FOCUS, which he says he often consumes while studying film scripts.

The unique collaboration has already produced some exciting advertising campaigns, so it is no wonder that another contract extension has been agreed on. Bruce Willis is sure to appear on billboards around the world as the face of Hell for another 2 years, smiling at us confidently from exciting images.

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EBRD supports Solus copper foil plant in Hungary

The European Bank for Reconstruction and Development (EBRD) on Monday announced a 28 million dollar loan for the construction of a plant by South Korea’s Solus Advanced Materials that will make copper foil for electric vehicle batteries.

The plant, in Tatabánya, in northwest Hungary, will be the first of its kind in Europe, the EBRD said. It will support the move to electro-mobility and advance the European Union toward its goal of achieving a climate-neutral economy, while contributing to the circular economy as it relies fully on scrap copper for its feedstock, the EBRD said.

“We fully support Solus Advanced Materials’ growth and its contribution to Hungary’s becoming a hub for the European EV battery industry,”

EBRD Head of Industries Frederic Lucenet said.

To date, the EBRD has invested almost 3.3 billion euros in 192 projects in Hungary.

Car industry
Read alsoProduction starts of first electric car manufactured in Hungary

Brutal factory gate price increase in Hungary

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Factory gate prices in Hungary rose by an annual 21.6 percent in November, accelerating from an 18.5 percent increase in the previous month, the Central Statistical Office (KSH) said on Thursday.
 
KSH said the prices went up mainly because of dearer raw materials, feedstock and vehicle fuel prices. Prices for domestic sale climbed by 31.2 percent. Export prices rose by 16.8 percent.

KSH noted that prices for domestic sale of the manufacturing sector, which accounts for a 63 percent weight in the PPI, increased by 22.3 percent,
 
while prices in the energy sector, which has a 31 percent weight, jumped 53.0 percent.
 
 
Export prices of the manufacturing sector, which have a 95 percent weight, rose by 16.8 percent, KSH said, as energy sector export prices, with only a 4.5 percent weight, climbed 206.1 percent on the back of the global rise in energy prices.
 
In a month-on-month comparison, factory gate prices were up by 2.7 percent as prices for domestic sale increased by 4.0 percent and export prices rose by 2.0 percent.
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Industrial output in Hungary dropped by 3.4 pc

Industrial output in Hungary dropped by an annual 3.4 percent in October, according to a second reading of data published by the Central Statistical Office (KSH) on Tuesday.

Output fell by 2.7 percent, based on data adjusted for the number of working days.

Month on month, it was 0.3 percent higher, according to seasonally and working day-adjusted data.

The car sector, Hungary’s biggest manufacturing component, saw a 29.8 percent fall in output on the back of the global chip shortage, while output of computers, electronics and optical equipment shrank by 10.7 percent.

Output of the food, drinks and tobacco segment, which made of 12 percent of manufacturing sector output, increased by 10.0 percent.

Headline industrial output fell by 3.4 percent in October, dropping for the second month in a row.

For the period January-October, output increased by an annual 10.8 percent.

Hungary’s industrial output dropped by an annual 3.4 pc – update

labour shortage

Industrial output in Hungary dropped by an annual 3.4 percent in October, according to a first reading of data published by the Central Statistical Office (KSH) on Tuesday.

Output fell by 2.7 percent, based on data adjusted for the number of working days.

Month on month, it was 0.3 percent higher, according to seasonally and working day-adjusted data.

The car sector, Hungary’s biggest manufacturing component, saw a big fall in output on the back of the global chip shortage,

while output of computers, electronics and optical equipment also shrank.

Other production sectors such as food, drink and tobacco, saw output gains.

In the Jan-Oct period, output grew by an annual 10.8 percent

Car industry
Read alsoProduction starts of first electric car manufactured in Hungary

Analysts told MTI that a shortage of components, especially semiconductors, hit vehicle manufacturing and electronics hardest, and any improvements here were unlikely until the middle of next year. This in turn is expected to weigh down economic growth, they said.

Gergely Suppán of Takarékbank said that had chip supply not been an issue, then the volume of industrial output could have exceeded the current figure by 9-12 percent, but as it is output has fallen back to below pre-epidemic levels.

Output is unlikely to return to growth in the coming months and the chip deficit is likely to endure for quite some time, he added.

Péter Virovácz of ING Bank said that looking at fresh German industrial data, there had been cause for optimism, but the Hungarian data did not reflect that particular recovery. He added that problems faced by Hungarian industry would not be resolved anytime soon. Still, the combined strength of smaller sectors may be sufficient to keep the level of industrial output above the waterline, he added.

Export performance will probably suffer and the downside risks to economic growth would intensify, he said.

János Nagy of Erste Bank, besides noting car manufacturing woes, highlighted the weak performance in recent months of the electronics industry.

The external environment was becoming less supportive, he said, and recent pandemic-related restrictions were taking their toll.

The lacklustre performance of the car industry and related sub-sectors would only be partially offset by new capacity in the battery and chemical industries, he added. Supply-side problems are likely to endure until the middle of next year at the earliest, he said.

Chips shortage reached Hungary

Factory
Industrial output in Hungary fell by an annual 2.3 percent in September as the global chip shortage impacted the local automotive industry, the Central Statistical Office (KSH) said on Friday.
 
Output of vehicle manufacturing “fell significantly” in September as the global semiconductor shortage caused factory shutdowns, KSH said in the first reading of data. Output of the computer, electronics and optical equipment segment also declined, while output of the food, drinks and tobacco segment rose, it added.
 
Adjusted for the number of work days, output fell by 1.7 percent.
 
In a month-on-month comparison, output edged down a seasonally and workday-adjusted 0.3 percent.
 
ING Bank chief analyst Péter Virovácz said supply chain interruptions, parts shortages and the labour squeeze present “serious downside risks” in the fourth quarter. Weaker exports paired with stronger import demand driven by consumption and investments could weigh on GDP growth, too, he added.

Erste Bank analyst János Nagy said the global supply crunch could impact industrial output in October, too, although he noted that new capacity in battery manufacturing and the chemicals industry could help offset the poor performance of the automotive sector.
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Production starts of first electric car manufactured in Hungary

Car industry

Hungarian car manufacturing has arrived at a new milestone with the mass production of the first fully electric cars manufactured in Hungary, Péter Szijjártó, the minister of foreign affairs and trade, said on Friday.

Speaking at the launching event of the mass production of Mercedes’s electric EQB SUV in Kecskemét, Szijjártó said the 50 billion forint (EUR 1.4bn) investment, supported by a 15 billion government grant, marked the first step in “revolutionary reforms” in Hungarian car-making. The plant will preserve 4,400 new jobs and create hundreds of new ones, he said.

“Countries that win the competition for investments in electromobility win the future,”

the foreign ministry cited Szijjártó as saying.

EQB models will be exported exclusively from Hungary to markets worldwide, excluding China, Mercedes said in a statement. With the launch, the Kecskemet plant will be producing all types of motors, the statement said. Production will become carbon neutral by 2022, making the plant an important pillar of the production network on the long run, Mercedes said.

Brand new electromobility plant inaugurated in Western Hungary

 

Meanwhile,

Hungary’s cash-flow budget deficit, excluding local councils, was 2,292 billion forints (EUR 6.3bn) at the end of September,

the finance ministry confirmed in a detailed reading of data on Friday. The shortfall widened by 391.3 billion forints from a month earlier.

“The outstanding growth of the Hungarian economy in the European Union as well as the

record-high employment data

show that crisis management based on tax cuts, investment incentives and support for families is working,” the ministry said, adding the government would carry on with economic stimulus and ensure all of the necessary resources to do so.

The central budget deficit came to 2,066.7 billion forints at the end of September, while the social security funds were 253.9 billion in the red.

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Read also Hungary’s budget deficit brutal high, inflation skyrocketing

Ten deaths, 814 new infections in Hungary in the past 24 hours

covid coronavirus hungary hospital
Ten patients died of a Covid-related illness over the past 24 hours, while 814 new coronavirus infections were registered, koronavirus.gov.hu said on Tuesday.

Latest coronavirus news

 
So far 5,913,862 people have received a first jab, while 5,685,596 have been fully vaccinated. Fully 928,000 Hungarians have received a booster jab. The number of active infections stands at 10,690, while hospitals are treating 737 Covid patients, 116 of whom need respiratory assistance. Since the first outbreak, 830,725 infections have been registered, while fatalities have risen to 30,330. Fully 789,705 people have made a recovery.
 
There are 8,112 people in official quarantine,
 
while 7,093,879 tests have been officially carried out.
 
 

Recovering economy?

 
The Hungarian economy, on the other hand, is recovering quicker than expected before. The industrial output in Hungary rose by an annual 2.6 percent in August, the Central Statistical Office (KSH) said on Wednesday. Adjusted for the number of working days, output edged up by 0.6 percent, staying slightly above the output in 2019, the second reading of data showed. Month on month, output fell 2.7 percent based on seasonally and working day-adjusted data.

Output of vehicle manufacturing fell by an annual 33.7 percent in August as the global semiconductor shortage impacted factories. The decline in output of automotive industry companies, which accounted for 17 percent of total manufacturing output in August, accelerated from a 6.7 percent drop in July. Output of the computer, electronics and optical equipment segment, accounting for 12 percent of manufacturing, slipped 3.7 percent in August. The volume of industrial exports edged up 0.2 percent.
 
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Hungary aims to be greener than ever – Innovation Minister about new technologies

László Palkovics Minister of Innovation and Technology 1

Hungary aims to attract the development and manufacture of new technologies spearheading global industrial trends with a view to boosting the Hungarian economy, the minister of innovation and technology said on Friday.

László Palkovics said during a presentation at the GreenTech 2021 expo and conference in Zalaegerszeg, in western Hungary, that green technologies play a key role in areas that are expected to define the Hungarian economy over the next decade.

He cited the growing number of investments mainly in the vicinity of car plants which are expected to enable Hungary to develop the second largest production capacity in Europe in the area of battery technologies within two years.

A number of supported projects have been launched that aim to make the economy greener, including energy storage solutions and ways to reduce carbon emissions in public transport, he said.

New, advanced Hungarian invention revolutionises the drone industry – PHOTOS

Starting from next year, only carbon neutral buses can be introduced in cities with more than 25,000 residents and tests are under way to operate them with synthetic fuels such as hydrogen, he added.

László Palkovics Minister of Innovation and Technology 2
László Palkovics Minister of Innovation and Technology in Zalaegerszeg
Photo: MTI/Varga György

One of the most effective ways of making transport greener is to develop rail transport, and this is a part of the Hungarian government’s strategy, Palkovics said.

Hungary plans to spend some 2,000 billion forints (€ 5.7 billion) on trains in the next eight years and the majority of these will have to be emission-free, he added.

Another priority is to make steel manufacturing more environmentally friendly, he said. Electricity and hydrogen must be given an greater role in order to maintain the competitiveness of Hungarian steel manufacturing, he added.

Storage and transport are important elements of Hungary’s hydrogen strategy, with the option of storing hydrogen. He also cited areas of innovation required to create a circular economy, including transferring waste storage to concessions in order to enable well-controlled and efficient waste recycling.

Read alsoNew modern train station will drastically change Budapest traffic – PHOTOS

Brand new electromobility plant inaugurated in Western Hungary

Schaeffler Group Plant Szombathely 1

Trade turnover between Hungary and Germany is expected to hit a record and surpass € 60 billion this year, Péter Szijjártó, the minister of foreign affairs and trade, said on Friday in Szombathely in western Hungary, where he attended the inauguration of a new plant of the Schaeffler Group.

The factory of the German conglomerate will manufacture parts connected to electromobility, and will create 200 new jobs, Szijjártó said. The government supported the HUF 23.5 billion (€ 67.1 million) green-field investment with a HUF 5 billion (€ 14.2 million) grant, he added.

Hungary is leading the way with the biggest increase in electric vehicles

Schaeffler currently has 3,000 employees in Hungary, he said.

Schaeffler Group Plant Szombathely 2
Inauguration of Schaeffler Group’s new plant in Szombathely, Hungary
Photo: MTI/Filep István

The electric car industry “is the future”, Szijjártó said at the event. Hungary has seen 34 large investments in the sector in the past five years, he said.

Hungary is also the 13th largest car part exporter in the world, with cutting-edge technology that continues to draw further investors, he said.

Hungary one of world’s automotive centres

Szijjártó called Hungarian-German economic ties a “success story”, noting that some 6,000 German companies employ 300,000 Hungarians.

Hungary one of world’s automotive centres

Hungary is home to one of the centres of the global automotive industry, the minister of foreign affairs and trade said on Friday, addressing a jubilee celebration of Audi Hungaria. The sector, he added, was crucial in restarting the national economy.
 
Péter Szijjártó said that the sector had increased its production by 31 percent in the first half of 2021, and by the end of the year, for the first time ever, its total value could exceed 10,000 billion forints.
 


Szijjártó said that 90.5 percent of the sector’s products were sold abroad, Hungary being the world’s third largest exporter of petrol engines, the fifth in terms of batteries and sixth of diesel engines.
 
“Audi greatly contributes to the exceptional international competitiveness of Hungary’s automotive sector,”
 
he said, noting that Hungary was “no longer just a place for making parts or assembly” and that Hungarian engineers contributed to global developments. He added that Audi was planning on expanding developments at its plant in Gyor, in north-western Hungary, focusing on electromobility and digitisation.
The automotive sector is also expected to contribute to the government’s plan to increase Hungary’s GDP to 5.5 percent this year, the minister said.

The Audi Hungaria factory in Győr is Audi AG’s third largest development center worldwide, employing over 500 developers.
 

Government gives go-head to 4 proposals on restarting economy, says FM Szijjártó

szijjártó

The government has approved proposals made by the body responsible for working out ways to revive Hungary’s economy, with a view to boosting the competitiveness of enterprises and developing infrastructure, Péter Szijjártó, the foreign and trade minister who is also in charge of rebooting the economy, said on Tuesday.

The pot of subsidised loans that micro, small and medium-sized enterprises can draw on for investments is growing to 300 billion forints from 150 billion, giving 900 companies the chance to enhance their competitiveness, he said.

Also, 4 billion forints will go towards infrastructure developments in Göd, on the periphery of Budapest, to help Samsung SDI further expand one of the world’s largest electric battery plants. The minister said that

given the importance of the car industry to Hungary’s economy, it was vital to have as many big international electrical producers as possible located here.

Szijjártó also announced that a road connecting Páty to the M1 motorway and a bypass will be built, making it easier for locals in the Zsámbék Basin to reach transport networks.

The new road is also expected to attract investments to the new industrial area there.

Meanwhile, the government has decided to speed up construction of a new building complex for the Museum of Transport as part of a brownfield investment in the Kőbánya area of Budapest, Szijjártó noted.

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Samsung’s factory in Hungary causes unbearable noise to locals

samsung factory hungary plant göd

The population of the city of Göd, home to Samsung’s factory in Hungary, is becoming more and more annoyed by the continuous noise caused by the factory. While locals are fighting for immediate noise reduction, a detailed environmental impact study, and the afforestation of the entire area between the residential area and the industrial area, the Göd battery plant has been expanded to a total of 120 hectares. 

Initially, the noise only affected the residents of Göd who are living in the vicinity of the factory (at a distance of 50 metres). From 2018, it was communicated to the locals that the factory was in trial operation. However, according to Zsuzsa Bodnár, the president of the Göd-ÉRT Environmental and Urban Protection Association, this was not true. As a result, the management of the factory placed the problematic cooling towers further back and built noise barriers in front of them.

Read also: Huge investment: Samsung plant in Hungary to create 2,700 jobs!

Units B and C were also built in the second phase of the factory. However, the latter have not received a commissioning permit yet, but the manufacturing activity has already started, reported Hungarian news portal Index. The lack of permits was uncovered by Göd-ÉRT after the association finally received a response to its request for public interest data. As a result, the Pest County government office ordered an investigation and immediately prohibited the production of the two units in February. Three months later, a penalty of EUR 2,850 (~HUF 1 million) was imposed to be paid by Samsung.

Despite all this, the noise remained, and production continues uninterrupted, which increasingly worries the locals, according to whom the noise is sometimes unbearable. Experts have also confirmed that the noise level emitted exceeds the permissible limit also outside the area of the factory. Subsequently, the environmental authority was forced to acknowledge the legitimacy of the complaints and establish a new noise protection area. According to a map prepared by locals,

more than 450 properties are affected by noise pollution.

On 19th July, the locals sent a public interest announcement to the head of the relevant government office, demanding that Samsung close its factory due to the violation of the law. As a second solution, they are trying to contact the supervisory authority, forcing the government office to intervene in their case.

The civilian initiatives are supported by the city’s leadership. However, the municipality’s official power over the Samsung SDI factory has been abolished after the factory has become a special economic zone. Therefore, they have limited influence regarding this issue. For the time being, they are forwarding public feedback and complaints to the appropriate institutions and trying to consult with decision makers, said the mayor of Göd, Csaba Balogh, adding that “as the Fidesz-led Pest County, which oversees the special economic zone, is given instructions from above, these talks can hardly be more than a bit of pressure, rather than a real negotiation.”

Previously, government agency authorities ordered Samsung SDI to draw up a noise reduction action plan, which was completed and adopted in January last year. So far, however, this has not resulted in any improvement,

and even more residents of Göd have been complaining about the unbearable noise that exceeds the limits especially during the night.

As a small result, the Municipality of Pest County provided funding for the installation of a narrow noise protection forest strip.

While locals are fighting for immediate noise reduction, a detailed environmental impact study, and the afforestation of the entire area between the residential area and the industrial area, the Göd battery plant has been expanded to a total of 120 hectares. 

According to Zsuzsa Bodnár, the president of the association GÖD-ÉRT, the development and implementation of newer and newer noise reduction plans could take many years, while the company that grows smoothly with the help of the authorities has also been licensed for additional noise sources. So, it is not yet known when a final solution will be figured out regarding the issue.

Read alsoInauguration of Samsung SDI’s electric car battery plant in Hungary

Skyrocketing prices in Hungary – will the trend remain?

Hungary prices money

Electricity paid by industrial consumers, construction materials, and petrol are becoming more and more expensive in Hungary. Of course, companies will not cover the expenditure costs but will leave that up to their clients by increasing product prices. Why does everything become more and more expensive in Hungary? 

According to telex.hu, petrol prices could reach the April 2012 maximum (HUF 453.8, 1.27 EUR/l) with HUF 446 (1.25 EUR/l). Of course, in some petrol stations, premium-quality petrol already cost more than 500 HUF/l (EUR 1.4).

Tamás Pletser, an oil industry analyst of Erste Bank, said to Telex that in 2012, oil was more expensive than today ($100 compared to $76-77). That is why most of us do not understand the current skyrocketing prices in the industry.

However, the US currency was much cheaper then than it is now.

In 2012, 1 dollar cost HUF 220, while today, it costs HUF 296. Naturally, there are other reasons behind the increasing prices. For example, the growing wages of petrol station employees, but that trend was balanced out by the automated system of e.g. Metro and Auchan, as well as the increasing sale volume of the stations.

Behind the increasing oil prices, there is a conflict between the United Arab Emirates (UAE) and Saudi Arabia. The core of the hostility is that Dubai can exploit only 65 pc of its maximum capacity, while this rate is 80 pc in the case of Riyadh. That is because the UAE enlarged its oil fields even during the COVID-19 pandemic. The consequence is that the UAE vetoed an OPEC agreement about increasing the daily production by 400 thousand barrels between August and December 2021.

Tamás Pletser said that the conflict

might cause the secession of the UAE,

which would result in increased production, like in March 2020, and would cause decreasing oil prices. The rich oil countries would like an optimum of $80-85 per barrel, where the Saudi budget does not have to face financial problems, but the poorer countries still buy it, and the American pale oil producers are unable to enter the market. If the oil price reached 90 dollars/barrel, the American companies could start to sell the 600 million barrels they produced during the COVID-19 epidemic but could not sell on the market.

Industrial electricity prices are also skyrocketing in 2021 because electricity producers want to gain back their previous losses.

Furthermore, the Hungarian market is very dependent on the electricity market of the neighbouring countries or Germany. The butterfly effect is a general feature of the region’s market.

Since the general elections are fast approaching,

the government tries to ease the consequences the citizens might feel in their everyday lives.

The National Bank of Hungary encourages citizens to start paying back their debts despite the moratorium introduced because of the epidemic. The cabinet also plans to ban the export of construction materials.

Government to ban the export of construction materials from October

According to telex.hu,

the government might intervene in the fuel market

provided the price of petrol reaches 500 HUF/l (EUR 1.4).

Based on 444.hu, the Hungarian inflation also broke an 8.5-year-old record with 5.3 pc. The price of food increased by 3.2 pc between July 2020 and July 2021. The price of alcohol grew by 12.2 pc, while in the case of tobacco, this rate is 19.7 pc. One can buy a new car for 9.2 pc more than in the previous year. The price of fuel grew by 24.2 pc.

Guest nights finally jump in May on eased restrictions

Gellérthegy Gellért Hill Budapest view kilátás

The number of guest nights at commercial accommodations in Hungary increased by an annual 207.5 percent to 646,000 in May, when pandemic restrictions were eased, the Central Statistical Office (KSH) said on Wednesday.

Commercial accommodations re-opened to tourists with Covid immunity certificates on May 1.

KSH noted that the number of guest nights in May was down 75.2 percent from the same month in 2019.

Industrial output also up in May

Industrial output in May increased by an annual 39.1 percent from a low base, the Central Statistical Office said (KSH) on Wednesday.

Working day-adjusted output was up 40.2 percent, while compared with April output was up 3.4 percent based on seasonally and working day-adjusted data.

In the first five months of the year, output grew by an annual 18.1 percent.

All manufacturing sectors contributed to the growth, in particular vehicle production on the back of a low base due to factory shutdowns in May the previous year. Output of computer, electronics, optical products and food, beverages and tobacco products went up below the industrial average.

Péter Virovácz of ING Bank said May’s figures were “extremely positive”, given the “severe pressures” this part of the economy is currently under due to recent supply problems regarding raw materials and semi-finished products.

Dániel Molnár of Századvég cited problems associated with the shortage of microchips and the rapid rise in industrial producer prices, though, he added, renewed foreign trading was likely to contribute significantly to economic growth in the rest of the year.

Gergely Suppán of Takarékbank said a further steady recovery in industrial output was likely in the coming months as pent-up demand is released and inventories replenished.

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Hungary industrial output in April up 58.8 pc yr/yr

Daily News Hungary economy

Hungary’s unadjusted industrial output grew by an annual 58.8 percent in April from a low base, according to a second reading of Central Statistics Office (KSH) data released on Tuesday.

Adjusted for workday effects, output was up by 59.2 percent.

KSH said output of the automotive segment was up by 342.5 percent in April, while growth in computer, electronics and optical equipment as well as food, drink and tobacco production was below average.

Month on month, output shrank by 3.2 percent based on seasonally and working day-adjusted data.

Industrial sales increased by 57.6 percent year-on-year as domestic sales climbed 24.5 percent and export sales jumped 83.7 percent.

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