trade

Hungary helps Czech, Vietnamese virus protection efforts

Hungary is helping the Czech Republic and Vietnam in their protection efforts against the coronavirus, the state secretary for communication and Hungary’s international profile said late on Wednesday.

Tamás Menczer said on Facebook that thanks to Hungary’s successful vaccine acquisitions, it had made good progress with vaccinations and “what’s more, we are even able to help our allies and partners”.

The Czech Republic and Vietnam have asked for Hungary’s help, he said.

The government has decided to lend 100,000 doses of Janssen vaccine to the Czech Republic and donate 100,000 doses of AstraZeneca and 100,000 antigen tests to Vietnam, he added.

Menczer said the Czech Republic was one of Hungary’s most important allies in Europe and the stronger the protection efforts were in the countries of the region, the better it was for Hungary.

Since the outbreak of the coronavirus pandemic, Hungary has lent more than 440,000 doses of vaccine to the Czech Republic and Vietnam is an important partner in the Southeast Asia region, he added.

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Read alsoHungary reports 86 new Covid-19 infections, no deaths

Hungary inflation eases to 4.6 pc in July – UPDATED

forint euro kató alpár fotó

Hungarian inflation was an annual 4.6 percent in July, after 5.3 percent in June, the Central Statistical Office (KSH) said on Tuesday.

CPI was driven by higher cigarette, spirits and vehicle fuel prices, with spirits and tobacco prices rising 11.1 percent, lifted by a 18.1 percent increase in tobacco prices. Prices in the category of goods that includes vehicle fuel grew by 8.6 percent, as vehicle fuel prices jumped 19.8 percent.

Food prices were up 3.1 percent, household energy prices edged 0.4 percent higher, consumer durable prices rose by 3.8 percent and clothing prices edged down 0.2 percent.

Core inflation, which excludes volatile food and fuel prices, was an annual 3.5 percent in July.

CPI calculated with a basket of goods and services used by pensioners stood at 4.2 percent.

In a month-on-month comparison, inflation was 0.5 percent.

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Read alsoCentral bank governor Matolcsy warns of looming global economic crisis

UPDATE

Analysts told MTI that whereas inflation had slowed somewhat in July, notable inflationary pressures remained.

Péter Virovácz of ING Bank said easing inflation had been largely due to base effects and there was still significant price growth on a monthly basis.

Gábor Regős of Századvég noted that inflation was still above the target band, and inflationary pressures remained, even if more moderately so.

Gergely Suppán of Takarékbank said

a cycle of interest rate hikes was needed, and the upside risks from second-round effects linked to commodity prices and re-invigorated demand, as well as wage pressure due to labour shortages, were substantial.

Dávid Németh of K and H Bank, said CPI growth was just shy of multi-year highs and it was far from clear that inflationary pressures in the economy had eased.

American deputy chief of mission reviews Hungarian-Chinese relations

orbán in china

American deputy chief of mission Marc Dillard recently gave an interview to a Hungarian portal. He discussed the Hungarian-Chinese relations, Fudan University and why these topics are important in today’s politics.

In portfolio.hu‘s interview, Dillard said that it is the American’s goal to keep the open and free economic system. When China or anyone else questions this, this open and free structure should be protected. To achieve this, America wants to take steps based on confirmation.

China is now the most significant challenge to an open and free economic system of all countries.

“Our relationship with China consists of both competition and cooperation. We need to distinguish between normal trade activity in relation with  China and what means a security risk or harms our national interests.” – Dillard Said.

He also elaborated on the possible dangers of the Chinese Communist Party’s influence.

“Take 5G, for example. It is important to understand the relation between Huawei, ZTE and the Chinese Communist Party. These companies are, in a sense, indebted to the Chinese government. Last week, the United States and other allied countries and organisations — the United States, the European Union, the United Kingdom, Australia, New Zealand, and NATO — identified malicious cybersecurity activities that could be linked to the Chinese Communist Party. It is important that countries that come into contact with China understand where these connections are and in what way these  are expressed.” – he told the portal.

Then he talked about the importance of transparency in the case of international projects. He mentioned the Budapest-Belgrade railway and the construction of a campus for Fudan University in Hungary. In both cases, the details about the projects and Hungary’s obligations are unknown to citizens.

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Read alsoBudapest mayor: Fudan university will serve the Chinese Communist Party’s influence

As for what the Hungarian-American international relation is like, Dillard said that this year marks the 100th anniversary of the Hungarian-American bilateral contact. 

“We strive to strengthen cooperation with Hungary based on common interests in the field of security and law enforcement, as well as in the fields of energy, climate change and the economy.” – the American deputy chief of mission expressed.

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Hungary’s PPI at 11.6 pc in June

forint 20 thousands

Factory gate prices in Hungary rose by an annual 11.6 percent in June, picking up from the previous month to reach the highest level in years, the Central Statistical Office (KSH) said on Monday.

KSH said the increase was influenced by the forint’s exchange rate to the euro as well as dearer commodities and feedstock prices.

Prices for domestic sale increased by 15.4 percent, while export prices climbed by 9.7 percent.

In a month-on-month comparison, PPI rose by 1.0 percent as prices for domestic sale climbed 1.7 percent and export prices edged up by 0.7 percent.

For January-June, PPI was 9.5 percent as prices for domestic sales rose by 9.7 percent and prices for export climbed by 9.4 percent.

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Read alsoUkrainian guest workers flooding Hungary despite their terrible living conditions

Hungary delivers ventilators to Mongolia

szijjártó mongolia ventilator

Hungary is donating 33 ventilators to Mongolian hospitals, Foreign Minister Péter Szijjártó said late on Thursday, after meeting his Mongolian counterpart, Battsetseg Batmunkh.

Hungary has “learnt from previous waves of the coronavirus pandemic” and has ramped up its capacity to produce crucial protective equipment domestically, Szijjártó said.

It is now in a position to help “friendly states”, he told a joint press conference in Ulaanbaatar.

The key to fighting the fourth wave is preparation, Szijjártó said. Hungary has organised one of the fastest inoculation campaigns in the European Union and has provided health-care facilities with all “strategic tools” necessary to treat Covid patients, he said.

He praised Mongolia’s inoculation campaign, noting that 60 percent of the country’s adult population has already received the vaccine.

Szijjártó also noted the close economic ties between Mongolia and Hungary.

Hungary is one of the six EU countries to have an embassy in Ulaanbaatar, he said. Hungary’s Eximbank has set up a 60 million dollar credit line to help Hungarian-Mongolian joint ventures, he said. Despite the “extreme difficulties” last year, trade volume between the two countries jumped 19 percent. Hungarian pharma company Richter is selling 70 types of pharmaceuticals in the country, and Hungarian companies are investing 57 million dollars in constructing Mongolia’s first animal vaccine factory, he said. In the past six years, over 500 Mongolian students started their studies at Hungarian universities, he added.

Batmunkh thanked Hungary for the aid to Mongolia and said that joint effort and mutual help was at the heart of a successful fight against the pandemic.

“Hungary has offered a helping hand in such times and helps us with equipment we badly need,” she said.

The ministers also discussed ongoing projects, investment cooperation and cultural projects, Batmunkh said.

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Read alsoHungary provided 150 ventilators and 40,000 vaccines to Czechia by the end of May

Wizz Air returns to its pre-pandemic operation

wizz air

Wizz Air generated nearly EUR 200 million in revenue in the quarter that ended late June.

VG writes that in July and August, Wizz Air will operate at 90-100% capacity compared to 2019, making it the first European airline to resume its pre-pandemic operation, said József Váradi, CEO of the Hungarian low-cost airline.

He added that in preparation for the summer peak, 600 new employees have been hired and the daily operating hours of the aircrafts will be increased to 10 hours.

At the same time, the CEO remains a firm believer in the strictest cost savings. In the next period, two 180-seat Airbus will be returned and 6 new 237-seat A321NEOs will join the fleet instead.

This increases the average number of seats per machine to 207.

While Wizz Air’s management remains cautious in the face of unpredictable government decisions in European countries for the winter period, they are confident that the company’s market position will improve strongly in the short, medium and long term due to constant fleet developments and excellent financial position.

The number of passengers transported by the airline has recently tripled to more than 2.95 million, improving aircraft utilization from 56% to close to 64%. These numbers are quite close to Concorde’s expectations, for instance.

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The rise of Chinese merchants in Hungary

marketplace

The country has an impressive number of over 7000 Chinese and Vietnamese shops selling clothes and all sorts of products.

It is common knowledge that there is a relatively big Chinese community in Hungary, especially in the capital. So strong that in May, they organised a three-day-long campaign to vaccinate 600 Chinese people living in Hungary.

Chinese merchants used to start their businesses in the country with small shops and stores selling clothes. Today, they sell all kinds of products for very low prices, let it be a hand mixer, a suitcase, a football, clothing items or sweets. Not only Chinese, but more and more Vietnamese merchants are also present on the Hungarian market. Some of them even own their very huge stores, similar to shopping centres.

These Asian merchants started as simple vendors at marketplaces, selling their products on small tables. Then they moved into small shops, then to bigger ones, only

to establish their own marketplaces and department stores.

Their working circumstances and the image of their shops changed drastically, from a ramshackle hut to a fancy big building.

The new marketplace of Józsefváros district, Sárkánycenter (DragonCentre), and AsiaCenter, for instance, are all proofs of their development and expansion, writes the trade blog blokkk.com. The old marketplace of Józsefváros moved to the other side of the big Kőbányai út, where the owners established a neat and tidy place, similar to a nice shopping centre.

This change is also because most of these Chinese vendors selling clothes decided to switch to having a widespread business of considerable traffic. In Kőbánya (Buda), for example, a new wholesale centre was opened with brand new shops.

Especially in the past few years,

the number of those Chinese or Vietnamese stores and convenience shops selling all kinds of everyday items skyrocketed in the residential areas.

It might be the effect of fast fashion clothing lines that made prices decrease. Nevertheless, the previously very popular and small 1-euro shops also disappeared.

Today, it is easy to bump into an Asian convenience shop or small discount store anywhere in the capital. Napi.hu found out that

the number of Chinese or Vietnamese little shops or businesses in the country is somewhere between seven and eight thousand.

Even bigger villages and settlements possess at least one, let alone big cities.

Some of these businessmen managed to become quite a big fish in the dangerous waters of commerce by establishing small chains of shops. Having a webshop for their products is also part of the package. Unico-Trade, for one, has eight little shops – including a webshop – in Budapest, called Eugroup.

On the other hand, the coronavirus pandemic certainly hit hard these Chinese clothes shops and smaller businesses, together with the system of online cash registers. Since giving a receipt was never really fashionable at these businesses.

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Record cargo traffic in Budapest

BUD Cargo City

Air cargo continues to boom at Budapest Airport; the aerodrome handled 86 798 tons of air cargo during the first six months of 2021, which is the strongest half-year ever in its history. Thanks to the record half-year, cargo volume projected over 12 months also jumped to unprecedented heights; during the year from June to June, the Cargo City handled 157 402 tons of goods, whereby the airport has crossed the dream threshold of 150 000 tons. Amongst other factors, the airport’s excellent cargo infrastructure, the further strengthening of e-commerce and the fact that the Alibaba Group chose Budapest as its Central and Eastern European aerial logistics hub in April 2021 all contributed to the upturn in cargo traffic.

According to bud.hu, cargo traffic records are being broken on a monthly basis at Ferenc Liszt International Airport.

The cargo volume handled by the BUD Cargo City is continuously increasing, both compared to 2020 and 2019.

The airport handled 15 233 tons of air cargo in June 2021, which constitutes 52.6% growth from the same month of 2020 and 41.2% compared to the same period in 2019. Thanks to consecutive months of outstanding cargo figures, volumes reached an unprecedented level during the first half of this year as well; 86 798 tons of cargo passed through Budapest Airport from January to June 2021, which is 35.9% more than during the first six months of last year. The dynamic growth in cargo not only produced a record half-year, but also a record 12 months; during the period from June 2020 to July 2021, the airport crossed the dream threshold of 150 000 tons, taking another huge step towards becoming the air cargo hub for the region.

Chris Dinsdale, the CEO of Budapest Airport Zrt. emphasized in connection with the results:

“This is the first time in its history that Ferenc Liszt International Airport has crossed the threshold of 150 000 tons. Performance over the past 12 months confirms our belief that the cargo business is of key importance for us, and the Cargo City, handed over last year, is indeed able to energize and encourage freight forwarders to use Budapest Airport for air freight, which is a very attractive solution for the collection and distribution of air cargo.” He added: “At the same time, our many years of effort for cargo have paid off, and we are reaping the rewards of the conscious work that our colleagues and the cargo community have put in together. However, cargo is not only about the airport, it is also about the national economy as a whole, because, besides its ability to create jobs, stimulate investment and support local businesses, it provides a safe and stable transport option for all businesses, on which companies who choose air freight can build a calculable future.”

Budapest Airport’s air cargo activities create approximately 1800 jobs directly at the airport and an additional 10 000 via the related ecosystem. Amongst airports within the East-Central European region, the increase in Budapest Airport’s cargo traffic has consistently been in the top league for the last 2 years, and its strategic role is increasingly unquestionable, which is further strengthened by the outstanding cargo traffic over the past months between China and Hungary.

József Kossuth, head of cargo for Budapest Airport highlighted:

“We consider it one of our greatest successes this year that the Alibaba Group, one of the largest e-commerce businesses in China and its logistics partner, Cainiao, chose Budapest Airport as their regional hub.” He added: “We are delighted and proud that Alibaba has chosen us, which is a huge achievement with great growth potential and further business opportunities, not only for the airport but for the Hungarian logistics industry as well. The company’s presence in Budapest already means the arrival of approximately 2.5 million items per month currently by air, which will increase strongly over the coming months.”

Several factors have had a positive impact on the outstanding recent cargo volumes. Firstly, Budapest Airport’s new air cargo logistics base provides an important basis for growth; the first phase of the BUD Cargo City, handed over one-and-a-half years ago, ensures an efficient, optimal, world-class solution for the dynamically increasing air freight, with 32 000 square meters of new building space and new aircraft stands. Secondly, another definitive factor is the cargo-friendly environment at the airport, the work of the cargo community surrounding air freight, where the airport works with the airlines, ground handling companies, authorities and cargo partners to create a fast and precise handling and a high-quality logistics service environment. In addition to this, e-commerce is growing steadily and dynamically in the region, for which air freight can offer the fastest and most efficient solutions.

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Ministry: Croatia key player in building up Central Europe

Croatia is a key player when it comes to developing central Europe, Zsolt Nemeth, the head of parliament’s foreign affairs committee, said at an event marking the start of Hungary’s presidency of the Visegrád Group, at the Hungarian embassy in Zagreb on Tuesday.

Hungary took over the rotating presidency of the V4 from Poland on July 1.

“When we talk about the V4, we mean all of central Europe, and this also carries great opportunities for Croatia,” Németh said.

He said the V4 presidency was the second most important leadership role for Hungarian diplomacy after the country’s current six-month presidency of the Council of Europe.

“Central Europe is a success story and we want to make it even stronger but also expand it to all of Europe,” Németh said.

He underscored the importance of linking the countries of central Europe, noting that Hungary will extend its M6 motorway to the Croatian border, from where it will pass through Croatia and Bosnia and Herzegovina, leading to Ploce on the Adriatic coast.

Németh said the ongoing debate on the future of the European Union was an “excellent opportunity” for Hungary to share its vision for a Europe of nations over a “federal, imperial EU”.

Gordan Grlic-Radman, Croatia’s minister for foreign and European affairs, expressed his country’s support for Hungary’s goal to overcome the economic crisis caused by the pandemic.

Read alsoHungarian tourists to flood Croatia?

PM Orbán: Hungary to back Slovenia’s EU presidency

visegrád four meeting

The European Union will have to address a number of serious issues over the next six months, but it is fortunate that the European Council will be headed by Slovenia during this period, Prime Minister Viktor Orbán said after a summit of the Visegrád Group countries and Slovenia in Ljubljana on Friday.

Addressing a news conference, Orbán identified the relaunch of the economy as the bloc’s most pressing issue. This, he said, required investments, security and the expansion of markets.

The key to boosting investments, he said, was keeping taxes level or cutting them. Security is conditional on central Europe maintaining a joint position on its opposition to migrant redistribution quotas, he added. The prime minister also said that the EU markets could only be expanded if the Western Balkan countries are admitted into the bloc as soon as possible, thereby making the EU stronger.

“Over the coming months, Hungary will do everything it can to support Slovenia’s EU presidency so that it is successful,” Orbán said.

The cooperation of central European countries is “no theory but practice,” Orbán said, pointing to the “exemplary” aid the countries provided to each other during the coronavirus pandemic.

Slovenia, with Janez Jansa as prime minister, has acted as EU president once before, Orbán said, adding that “Jansa, as one of the anti-Communist camp, has the historical perpective to assess European matters.”

In response to a question, Orbán said migration had two sources: Asia and the Sahel region. “We are withdrawing troops from Afghanistan and cutting the number of men in Sahel, too,” he said, referring to NATO’s recent withdrawal from the central Asian country. The decision will have consequences, “everyone will have to prepare for migration waves from Afghanistan,” Orbán warned.

The European Union should focus on “important issues” such as the pandemic, the restart of the bloc’s economy and migration, Orbán said.

Instead, the European Union is “waging a rule-of-law jihad to divert attention from real problems,” Orbán insisted, adding that the rule of law should not be used as a political weapon, he added.

Orbán said the European Union’s situation has changed since the mid-00’s, when “there were new member states and old ones.” By now, the rift is between countries with “high state debt, low growth and scores of migrants destabilising security, and those which keep debt under control, grow swiftly and have protected themselves from migrants and so they are stable,” he said, adding that central Europe belongs to the latter category.

Janza’s “great task” is to unite those two “very different” camps, Orbán said. Slovenia, as “the westernmost central European country,” is ideally suited to the task, he said.

Jansa told the same news conference that since its accession to the EU, Slovenia has cooperated well with the Visegrad Group and often “coordinated priorities”.

As the country holding the rotating presidency of the European Council since July 1, Slovenia has a responsibility to find solutions to the challenges the bloc is facing, he said.

Jansa thanked the Visegrad Group countries for their support of Slovenia during the coronavirus epidemic. “While the European Union failed to organise aid, these countries supported Slovenia with shipments of protective gear and vaccines,” he said.

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Orbán: Hungary, Serbia can rely on each other

hungary serbia visit

Hungary and Serbia can rely on each other, Hungary will give all the support to Serbia’s European Union accession and when Hungary faces difficulties, it can count on Serbia, Prime Minister Viktor Orbán said on Thursday after talks with Serbian President Aleksandar Vucic in Belgrade.

Orbán told a joint press conference that historic experience was important and when it comes to Serbia’s EU accession, he took an approach based on the position of historic experience. At the time of Hungary’s EU integration, Poland had a key role in the region, he said.

Serbia is a key country for the stability of the Western Balkans, Orbán said. By supporting Serbia’s EU accession, Hungary supports the integration of the entire Western Balkans, he added.

Orbán said the pandemic had overshadowed the issue of mass migration but the old problem has re-emerged. The stability of the Western Balkans and its ability to protect against migration are essential also for Hungary’s security, he added.

Hungarian-Serbian cooperation has resulted in several serious successes, such as railway cooperation, 16 large investment projects at the time of the pandemic and setting up a gas interconnector, he said.

Concerning gas supplies, he said Hungary made every effort to set correct prices when Serbia was in a difficult position. Central European countries must understand that their shared long-term history should be given priority as against short-term interests, he said. “The winds of history may change at any time and any country may find itself in the position that it has to rely on its neighbour,” he added. The region cannot be stabilised unless the countries understand this, he added.

Orbán said figures of the past seven or eight years revealed a “great success story developing” in Serbia, with decreasing public debt, and new investments and development.

He said Hungarian-Serbian cooperation was based on sharing the same goals, to ensure that children live a better life than their parents did and both countries thinking along the lines of family and nation.

In response to a question, Orbán said the coronavirus pandemic was not yet over but the vaccination programme was successful in both Hungary and Serbia. The two countries have agreed on the mutual recognition of vaccination certificates and all border crossings have been reopened. Cooperation will be maintained, he added.

He said the EU suffered from a low level of trust concerning its future, with westerners having reached a very high level of the welfare state and they are uncertain of whether there is any way further.

As a result, there is great caution in the EU when it comes to large new initiatives, which has been termed as “enlargement fatigue”, he said. However, if enlargement is neglected, one of the most important neighbouring regions will be unstable and the EU will not gain new energies, its development will get stuck and it will disintegrate, he added.

Enlargement which is not possible without Serbia must be the most important project of the EU, Orbán said. It involves development and can carry Europe ahead, similarly to when the accession of central Europe brought energy to European cooperation, he added.

Vucic highlighted Hungary’s role in bringing about political and economic stability in the Western Balkans and thanked Hungary for its achievement that he said had been recognised by every country in the region.

He also highlighted Hungary’s contribution to improving Serbia’s relations with Vojvodina’s Hungarian community which he said had also bettered his country’s relations with Hungary.

Vucic noted that the volume of bilateral trade had come close to 2 billion euros during the period of the pandemic and saw a 23 percent increase this year. Hungarian companies implemented 16 major investment projects in Serbia last year, he said.

He thanked Hungary for its support to Serbia in its European integration endeavours.

Read alsoHungary, Serbia connected gas pipeline networks

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 retail sales up 5.8 pc in May

Daily News Hungary economy

Retail sales in Hungary grew by an annual 5.8 percent in May, increasing for the second month in a row after eight months of declines, the Central Statistical Office (KSH) said on Tuesday.

Retail sales also rose by 5.8 percent when adjusted for calendar year effects. Adjusted food sales increased by 2.6 percent and non-food sales climbed 8.7 percent. Vehicle fuel sales increased by 9.7 percent.

Sales of clothing and footwear shops rose by 59.8 percent and second-hand shop sales climbed 48.4 percent, continuing to show strong growth after unprecedented increases in April, when non-essential businesses reopened after a pandemic lockdown.

In absolute terms, retail sales reached 1,146 billion forints (EUR 3.3bn), at current prices. Food sales accounted for 47 percent of the total, non-food sales for 38 percent and vehicle fuel sales by 15 percent.

Péter Cseresnyés, state secretary at the innovation and technology ministry, told public broadcaster M1 that further growth in retail trade was expected in view of increasing wages and the removal of coronavirus-related restrictions.

The May figure indicates that “retail has started to recover”, adding that 6 percent growth was similar to the tendency 7 years before the coronavirus outbreak.

During the epidemic, food shops stayed open, therefore spectacular growth was not on the cards, but the volume of online purchases has significantly grown, Cseresnyes said. Online companies have registered a combined turnover of 500 billion forints (EUR 1.4bn) since the start of the year, offering prospects of a further rise, he said.

Cseresnyés also noted that

over 4.5 million Hungarians held jobs with “continuously growing wages”, ensuring that their purchasing power had not diminished.

The high number of people inoculated against coronavirus ensures that all citizens can enjoy freer shopping now that the restrictions have been lifted, he added.

Analysts polled by MTI also said they expected further growth in retail in the coming months.

ING Bank leading analyst Péter Virovácz said

the May figure was “disappointing” considering the low base.

Though in April and May efforts were being made to revive the economy, a major boost to retail had failed to materialise, he said. Restarting the economy could give momentum to services, but these have no bearing on retail figures, he added.

Virovácz said, however, that his optimism for a rebound in June was “unbroken”, adding that a higher figure may have been supported by tourists recently visiting Budapest to watch football matches in the European championships.

Gergely Suppán of Takarékbank said

the May figure of 5.8 percent was below expectations, adding that families may have spent more of their money on recreation than shopping.

Retail turnover, however, will be supported by people gradually returning to their jobs, as well as by a “dynamic wage growth in sectors unaffected by the restrictions”. According to Suppan, retail turnover could grow by 3 percent this year, but this year’s low base, and refunding personal income tax to parents next year could result in double-digit growth. He said pre-pandemic levels in retail could be reached in the second half of this year.

Századvég analyst Gábor Regős said

the May figure had come as expected in view of the removal of restrictions and the low base.

Retail could be boosted by easing further restrictions and growing employment, he said, warning however that a possible fourth wave of the pandemic could impact that tendency.

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Cooperation with Russia will help Hungary be first to relaunch its economy, says minister

Szijjártó yekaterinburg

Pragmatic cooperation with Russia will help Hungary in its quest to be the first in the European Union to relaunch its economy, Péter Szijjártó, the minister of foreign affairs and trade, said at the INNOPROM Industrial Exhibition in Yekaterinburg on Tuesday.

Russia, he said, had helped the country snap the third wave of the coronavirus epidemic.

“The economic response of Hungarians to the pandemic was not the standard one, so we’ve been the first to reopen,” Szijjártó said in a speech to the Hungarian Economic Forum. “Our aim now is to be the first [in the EU] to relaunch our economy.”

The minister said Russia-Hungary political ties were unencumbered by any problems that might hinder business cooperation. Bilateral trade, he added, grew by 51 percent in the first four months and Eximbank has opened a 615 million US dollar credit line to fund business cooperation.

Wizz Air will soon launch a flight to Yekaterinburg and set up a base in St. Petersburg, he noted.

Russian Valdai passenger hydrofoils will be deployed to the Danube in Hungary, he added, while a 30 million euro purchase of Hungarian refrigeration equipment will be used in a power plant in St. Petersburg, among other business deals.

A Hungary-Russia state rail transport JV will ensure that busy China-Europe routes pass through Hungary, with a new transshipment and logistics centre in Záhony key to this endeavour, he said.

Also, talks are under way on strategic cooperation in vaccine manufacture, Szijjarto said, noting that almost 70 countries are administering the Sputnik V vaccine, with demand expected to grow in the future.

The latter two projects may give a major boost to Hungary’s economy, the minister said.

Szijjártó signed an economic cooperation agreement with Natalya Komarova, the governor of the Khanty-Mansi Autonomous Area, and met Yevgeny Kuivashev, the governor of Sverdlovsk Oblast.

Representatives of various Hungarian companies accompanied the minister during his visit.

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PM Orbán: V4 countries should become winners of global economic transformation

visegrád four

The Hungarian presidency of the Visegrád Group will promote the member countries’ efforts to become winners of global economic changes, Prime Minister Viktor Orbán said in Katowice on Wednesday.

Orbán told a press conference marking the end of the Polish presidency of the V4 that the Hungarian presidency, to start on July 1, will help the Visegrád Group members (Czech Republic, Hungary, Poland, Slovakia) restart their economies through boosting investments.

As taxes need to be kept low to attract investments, Hungary does not support international initiatives for tax hikes, he added.

Orbán named security as another important aim, adding that this was tightly connected to migration. Hungary does not support the mandatory distribution of migrants, he said, adding that migration posed an especially great risk in the current health situation.

Further, Hungary advocates the soonest possible European integration of Western Balkans countries, the prime minister said.

Orbán stressed the need of a restart in intellectual terms as well. He said the Visegrád Group countries, both individually and as a group, will participate in the debates about the EU’s future.

Orbán congratulated Poland on its performance as V4 president in what he called the most difficult year of recent decades. Nevertheless, cooperation continued among the four members and none of them were left alone in trouble, he added. The Visegrád Group members cooperated in transporting citizens home when Covid restrictions made travel difficult, distributing equipment, sending doctors to each other and also in access to vaccines, he said.

Orbán said that after the coronavirus pandemic, the global economic and world politics status quo has changed.

The world’s largest free trade area has been established in Asia and the United Kingdom quitted the European Union, he said. The prime minister said that good relations with Britain should be maintained even after Brexit.

Orbán said that if the V4 countries were considered a single entity today, they would represent the world’s 17th largest economy, with economic growth twice as fast as the EU’s and public debt representing only 4 percent of that in the EU. After Germany, the V4 countries include the highest number of workers in the EU, he said.

In response to a question, Orbán said that overcoming the area’s lag in infrastructure development was a priority. During the Cold War, connections were established in east-west direction and the situation has not changed since, he said. However, building north-south links have now become vitally important for the V4 countries. It remains to be seen, however, how much EU funding can be involved in this programme, he said.

Orbán said central Europe represented considerable economic weight in the EU economy. The central European nations are full members of the European Union with major contributions to its overall performance that help the bloc keep pace with other regions. Accordingly, they demand due respect, he said.

The prime minister said Hungarians will never accept other EU members telling them how to raise their children. Nor will they accept anyone saying that a central European nation should be brought to its knees, he said.

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Hungarian postal service changes customs clearance fees to comply with EU regulations

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Hungarian postal services company Magyar Posta will change its customs clearance fees from July 1 to comply with changes in European Union regulations, the company said on Wednesday.

Magyar Posta noted that products ordered from outside the European Union with a value of less than 22 euros will no longer be exempt from VAT from July 1, and all items will be subject to VAT and customs clearance.

With the change in the legislation, Magyar Posta will introduce a new customs clearance fee system, with fees set in proportion to the value of the products. If, for example, the consumer paid the price excluding VAT with online payment, the customs clearance fee will be 399 forints (EUR 1.14) for products with a value of less than 10 euros and 499 forints for items worth 10-22 euros. However, if the recipient pays by cash on delivery, the fee will be 799 forints, or 899 forints, respectively.

For products with a value not exceeding 150 euros, there will be a uniform fee of 399 forints if the customer pays the webshop price including VAT.

The number of customs clearance procedures is estimated to increase 70-80 times due to the abolition of the VAT exemption.

Magyar Posta prepared for the change in legislation by investing billions of forints into IT development, automated procedures and logistics capacity expansion.

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Are digital wallets as promising as consumers expect them to be?

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There is no simpler way to put this: Digital wallets are the future of payments and one of the easiest methods to keep your money safe and accessible at all times. This is the major reason why digital wallets are becoming more and more popular with every passing day.

Come to think of it, E-wallets provide almost everything that consumers look for in an electronic payment service. They are quick, easy to use, and on top of everything else, they ensure your payments are kept safe at all costs.

However, the real question is that are these services as perfect as some of online reviews portray them to be ? Or maybe we are looking past some important things. Let’s have a look!

What Are Digital Wallets?

Digital wallets or mobile wallets are online services that allow you to deposit money on to them and later on you can use these to make purchases, electronic payments, and even Venmo transfer funds from one app to another within minutes.

According to one study, more than 80 percent of the users who have smartphones now also work with mobile wallets and seem to have quite a positive perception of these. In fact, when you compare other means with this latest technology, even gadgets like credit cards and coupons sound to be a thing from the stone age.

When reviews from different companies and online stores were gathered, they highlighted that more than 70% of them were confident about digital wallets becoming the leading mode of payment in the future. That explains why most merchants have already marked these as the preferred form of accepting charges.

The Truth Behind Success!

If consumers are so sure about the usability of wallets such as Cash App and Venmo, then there has to be some reasons that explain why.

One of the major advantages is that they eliminate the need to carry a wallet physically in your pocket. Simply download the app and keep it loaded so you can pay whenever needed without having to worry about paper cash.

Payments with these apps are also quite simple. You are just supposed to hold up your phone to the payment device or transfer money online without any hassle. Most digital wallets nowadays utilize NFC chips while there are others that work with device to device payment only.

Moreover, all your account details would be thoroughly protected with layers of encryption. You can choose to save the data on your device so there is no need to re-enter login details whenever proceeding with this action.

Why Do We Trust The Safety of Mobile Digital Wallets?

E-wallets come with additional security features that are bound to appeal to new customers. You can keep a check on transaction history, personal account monitoring, set up activity alerts, etc.

Furthermore, there are no complications involved when you wish to wipe up your data. For example, if you lose a credit card, the first step should be to contact the bank and get the card activated or cancel all the ongoing transactions. With mobile wallets, you simply access it remotely by providing your login details on any remote device and wipe clean everything that existed on the application!

With biometric identification, it is now almost impossible to access such an app by fraud or scamming activities. In contrast to regular wallets. E-wallets only open once personal ID code, fingerprint, facial geometry match or other valid identification protocol has been completed.

One of the amazing perks of Digital Wallets is that you can make payment to your favourite gaming platforms to buy extra perks. Few days ago I died in minecraft. First of all, I found out where I died in minecraft and then paid instantly to buy a new life.

Take Home Message

Undoubtedly, digital wallets are quite successful and seem to be only showing a positive growth in the future. They can help you enhance your shopping experience and save time as well.

However, some customers are still of the view that there is no alternative to conventional paper money. They expect online platforms and mobile apps to be less safe and prefer to keep wallets in their hands for all sorts of shopping sprees.

Nonetheless, digital wallets can help lower down customer acquisition cost and reduce operations costs as well. Many businesses have realized this and therefore stand by the use of digital wallets as a preferred mode of payment.

Are you currently using this service? If not then what are you waiting for? Give it a try and don’t forget to share your reviews in the comment section below.

Hungary concludes preliminary agreement with Russia on long-term gas delivery

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Hungary and Russia have agreed to conclude a long-term agreement on the delivery of natural gas from Russia to Hungary, Foreign Minister Péter Szijjártó said on Thursday, after talks with Gazprom CEO Alexey Miller.

“We intend to enter into a 15-year contract, with flexible pricing,” Szijjártó said on the sidelines of the St Petersburg International Economic Forum.

The agreement would ensure long-term gas supply security, Szijjártó said, noting that the current deal expires at the end of September. Prices, however, are yet to be negotiated, he said.

“What I can say is that the agreements I have brokered before with the head of Gazprom have all been fulfilled completely,” Szijjártó said.

“So there’s no need for us to have any doubts this time, either.”

The minister said construction on a gas pipeline linking the Hungary-Serbia border to Hungary’s gas pipeline network would be completed by Oct. 1, enabling the delivery of large quantities of gas to Hungary. Serbia has completed its part of the project, he said, adding that it was now up to energy companies to discuss the practical aspects.

Szijjártó said he had also discussed the potential acceleration of the upgrade of Hungary’s nuclear power plant in Paks with Rosatom CEO Alexey Likhachev. He said everything was set for the next phase of construction on the new blocks to begin by the end of September, noting that this was also the deadline for Hungary’s National Atomic Energy Authority (OAH) to issue the implementation permit for the project.

Szijjártó said the first concrete elements of the new blocks could be put in place at some point next year. Given that Rosatom has just finished a project in Belarus, it can focus all its capacities in the region on Hungary, he added.

The transformer station that will supply power for the construction works at the power plant is already operational, and soon the general contractor’s office building will also open, he said.

“Meanwhile, we’re in talks with the countries in the region on exporting electricity produced by the new blocks,” Szijjártó said. “Hungary’s opportunity to increase its electricity exports will come as a major boost, in addition to meeting its climate-related targets by 2030 and 2050, respectively.”

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