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.
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:
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.
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.
Source: vg.hu, index.hu