The proportion of foreigners in the Hungarian economy has decreased
Viktor Orbán, the Prime Minister of Hungary, launched the opening of the financial year over the weekend. The goal is the continual growth of the Hungarian economy. However, according to Orbán, Hungary must avoid five types of trap situations.
Five trap situations
When examining an economy, five different trap situations can be identified. Hungary must avoid these if it is to achieve a successful economy. These five trap situations are:
- a trap of high foreign ownership
- the trap of dominance of large exporting companies
- negative profit balance trap
- the trap of duality
- a trap of rural backwardness.
Prime Minister Viktor Orbán highlighted the danger of a high share of foreign ownership.
The high share of foreign ownership in Hungary was significant for the first time in the period before 2010. In the 2010s, the share of foreigners in the Hungarian economy decreased slightly, from 51.6 per cent to 49.2 per cent writes vg.hu.
There are currently 14,000 foreign companies operating in Hungary.
Foreign ownership in Hungary
The role of foreigners in the domestic economy has decreased. We can also see this in terms of sales and investment. However, the share of foreign exports is increasing.
The share of Hungarian-owned companies in the media, energy and banking sectors also increased.
While in 2010, for example, the role of Hungarian ownership in energy was below 29 per cent, in 2020 it was already 56 per cent. Similar significant growth can be observed in the banking sector. It stood at 40 per cent in 2010, while by 2020, 58 per cent of the banking sector was domestically owned. The Hungarian ownership share increased in several key sectors.
The proportion of Hungarian companies is also between 50-70 per cent in trade, food production and tourism.
At the end of 2020, the Hungarian ownership share in the human health and social care sector, construction and transport was over 70 per cent.
Overall, it can be said that great progress can be observed in gaining Hungarian ownership, writes index.hu. Progress is clear in key sectors, but there is still room for growth in others.
- EC finds Hungary violated merger rules with VIG-Aegon veto
- Hungary has one of the largest price gaps between renting and buying in the world
Source: vg.hu, index.hu
2 Comments
With the lowest salaries in the E. U… What would you expect? Party is over.
SMASHED – the Property Market – which will become a Carnage in the Hungarian Economy.
Noticable – extremley “veiled” or “hidden” – it does appear the present Government making comment(s) on the state the condition – OVERALL – of the Real Estate Property Market of Budapest, Hungary.
Why I wonder ???
Foreign Investment – into the Property Market in Budapest, Hungary over the past (10) ten years which has been in large DRIVEN by investors of people – in this order ;
(1) – Chinese.
(2) – Vietnamese.
(3) – Germans.
Hungary – we BUILD on and on – Apartments, Houses, Flats, Renovations, and Hotels.
The Economy of Hungary – interest rates AGAIN risen, the sustainability of the prices placed on property’s in Hungary, Budapest, a market that is SATURATED with Sellers – that continues to highlights Buyers – not Interested, or “Scared Off ” – waiting for market adjustment to realistic CORRECT value(s) – the mounting PRESSURE on the Hungarian Economy, weakness of the Forint – these are just examples – that give STRONG indication – Factual indication – that the Property Market – in its Broadsheet – the componentry that makes up the Property & Real Estate Markets in Hungary, Budapest – is in MASSIVE Trouble.
Supply outweighing Demand – in an Economy that is in TROUBLE – not a Happy Medicine.