Hungarian Conservative

This year, Hungary is set to break both investment and export records, with incoming foreign direct investment doubling from the previous year to €13 billion and Hungarian exports increasing from €142 billion in 2022 to €150 billion.

On the basis of the ten-point proposal developed by the Ministry of Economic Development, the Hungarian government is launching a 2.9 billion forint Automotive Supplier Development Programme to enhance the role of Hungarian businesses as suppliers of multinationals in Hungary.

Alongside the distribution of laptops that started last year, more than 4,000 locations have been equipped with wireless internet access, and with a budget of 10 billion forints, the electrical networks of the relevant institutions have been renovated.

On the margins of the sixth China International Import Expo, Economic Development Minister Márton Nagy held talks with the leaders of the Industrial and Commercial Bank of China (ICBC), the world’s largest commercial lender, emphasizing Hungary’s aim of becoming a regional financial hub in addition to being the meeting point for Eastern and Western capital and cutting-edge technology.

The state secretary articulated the vital goal that the number of university graduates among the Hungarian diaspora should exceed their representation within their respective countries, with universities becoming cultural hubs for Hungarian communities abroad. He called the opening of the Márton Áron College’s renovated building a defining moment in infrastructure development.

The statement quoted Wizz Air CEO József Váradi as commenting that receiving the CAPA international sustainability award for the second consecutive year is a great honour. The recognition confirms the company’s commitment to reducing their carbon intensity by an additional 25 per cent by 2030.

According to a statement from the Ministry of Foreign Affairs and Trade, Péter Szijjártó highlighted during the inauguration of the new office of Aldi International IT Services that the establishment of the IT service centre will create fifty highly skilled jobs. The state supported the 1.2 billion HUF investment with 120 million HUF.

Speaking at a ceremony opening a BMW training centre where the first hundred students started their three-year training in September, Szijjártó said the fact that the company had chosen to establish an exclusively electric production platform in Hungary showed great confidence in Hungarians.

MFAT State Secretary Levente Magyar stated at a press conference on Monday that Stellantis, which owns fourteen automotive brands, has chosen Hungary as the hub for autonomous driving technology and electrification. ‘We are proud that Hungary…has become one of the leading automotive powers in the world in just under 20 years,’ he said, adding that the country is among the top 20 in terms of automotive production.

Next year marks the 170th anniversary of Dreher Breweries, which will embark on its largest-ever investment programme, valued at over 100 billion forints, the most massive development in the history of Hungarian brewing.

The BMW i Vision Dee will be on display for three days in front of the Modem Modern and Contemporary Art Centre, as announced during a press conference at the venue on Thursday.

According to Mercedes-Benz Chairman Ola Källenius, the company’s Kecskemét plant is a crucial part of their global production network. He stated that the future is being built in Kecskemét, and this is not mere flattery, especially after the first EQB compact SUV model rolled off the production line in the plant in the autumn of 2021.

The most important feature of the programme announced with a five billion forint budget is that state support will reach innovative startups through incubators. Incubators support early-stage startups in bringing their products based on new technologies to the market and in acquiring the necessary additional financing.

As a result of a series of government initiatives, both households and institutional players have significantly increased their holdings of government bonds. In an unprecedented manner, households now hold a larger amount of government bonds than bank deposits.

Magyar Vagon Ltd. is affiliated with the President and CEO of MOL, Zsolt Hernáda, who, as of the 2023 edition of the list, is the seventh most influential individual in Hungary.

Nestlé Hungária Kft.’s recent capacity expansion investment in Bük is set to create 280 new job opportunities, marking yet another milestone in Hungary’s impressive year of record-breaking investments, exports, and employment, Minister of Foreign Affairs and Trade Péter Szijjártó made the announcement at the project’s inauguration ceremony.

In his remarks at the inauguration of a new granulation plant established by Swiss Omya in Eger, Minister of Foreign Affairs and Trade Péter Szijjártó highlighted that this year a record €6.5 billion worth of foreign investments have materialized in Hungary, demonstrating that international trust in the Hungarian economy remains unbroken.

The director of the National Bank of Hungary (MNB) András Balatoni explained that the strict monetary policy, decreasing global commodity prices compared to last year, restrained consumption, and market-boosting measures by the government are increasingly exerting a disinflationary effect.

This positive trajectory in Hungary’s financial landscape had an impact on the nation’s global ranking in terms of wealth. Hungary has advanced two positions, now sitting at 30th place among the world’s nations, demonstrating the country’s progress despite the challenging economic conditions.

During the inauguration of the British-owned GKN Automotive Hungary Ltd. factory, the minister highlighted that the company, specializing in manufacturing automotive components, will serve BMW, Mercedes-Benz, Suzuki, and Volkswagen through the newly built facility within the framework of the approximately 52-billion-forint greenfield investment.

Previously, there were discussions of buying out the airport with the participation of Hungarian private investors and major corporations, but despite reportedly advanced negotiations, the transaction was postponed in 2021 citing unfavourable Hungarian and international financial conditions.

The credit rating agency expects a three per cent economic growth in Hungary next year, supported by strong exports, a high investment rate, and rising real wages.

According to Minister of Construction and Transport János Lázár, in the new Hungarian settlement type of the 21st century the countryside merges with the metropolis.

According to Minister Szijjártó, Hungary has undoubtedly become a leader in the continuously advancing automotive industry transformation, and the city of Debrecen has turned into an important global centre for the sector.

‘And here we come. Our time has come because by becoming the meeting point of Eastern and Western investments, we provide a life insurance for Hungary, we provide a guarantee that in the coming years, Hungary will be the winner of the big global economic transformation that the automotive revolution dictates,’ Péter Szijjártó said.

The Ministry of Economic Development said in a statement that the increased demand for government bonds has both directly and indirectly improved the government’s self-financing capability, reduced government interest expenditures, and managed to preserve the real value of citizens’ savings. Additionally, government measures have contributed to the fact that individuals are making more conscious decisions about their savings, turning towards higher-yielding assets in a high yield environment.

The ministry emphasised that combined cycle gas turbine power plants can be built relatively quickly, have exceptionally high efficiency, low specific carbon dioxide emissions, and their capacity can be adjusted to consumption levels.

According to Chief of the Prime Minister Office Gergely Gulyás, the developments in Tarcal are clear evidence of the rapid growth of the Tokaj region, and consequently, the whole country. He added that the nearly 620 million forints worth of road reconstruction, supported by the government, will make vineyards accessible by bike and on foot, not only for the winemakers and landowners, but also for those who visit Tokaj-Hegyalja for tourism purposes.

By replacing diesel-powered vehicles, Volánbusz’s electric fleet eliminates approximately 5,500 tonnes of carbon dioxide annually, equivalent to the annual carbon dioxide emissions of 2,000 passenger cars.

The minister advocated for strengthening ties between the European Union and Central Asia, urging the prompt signing of the EU-Kyrgyzstan Enhanced Partnership and Cooperation Agreement, which was initialled in 2019.