Hungary is today a top spot for international investment, and László György, the Secretary of State for Economic Strategy and Regulation at the Ministry of Innovation and Technology (ITM), attributed Hungary’s success on this front to macroeconomic consolidation and an investment-friendly environment.
The secretary was speaking on the “Cooperation for the Development of Szolnok’s Economy and Jobs in Szolnok” and quoted the IMF as having said that Hungarian industry features the highest share of high-tech, 70 percent – on the same level as Germany and Denmark. György also pointed out that Hungarian GDP growth in 2018 of more than 5 percent exceeded analysts’ expectations, while growth in competitor countries slowed. Additionally, disciplined fiscal policy has resulted in real deficits being below projected deficits every year since 2014.
Further achievements since 2010 outlined by the secretary included:
- gross government debt now well below the EU-19 and EU-28 average
- 850,000 more Hungarians employed than in 2010, 600,000 in the primary labor market
- employment rate above the Euro-zone average
- tax burden on employers and SMEs reduced
Reform of adult and vocational training systems has also been a priority, emphasized by Mária Kállai, the Fidesz MP in the region. There are presently 9,000 small and medium-sized enterprises in Szolnok looking to further increase their efficiency and competitiveness. The economy in Szolnok has been very strong in recent years, with business tax revenues hitting more than HUF 7 billion, and wage growth is expected to follow.
On the environmental front, György said that nuclear power, as well as green and high-tech solutions, will be necessary to help reach its goal of being 90 percent climate neutral by 2030 and achieve zero-carbon electricity generation. Support for SMEs – by both the EU and individual Member States – will be key to promoting the innovation required for climate neutrality.
Hungary is also getting ready for the 4th industrial revolution by boosting its digital and transport infrastructures, thus connecting Hungary to all players on an international level. Ultimately, the goal is for Hungary to become one of the top five countries in the European Union to live, reside and work in by 2030, the secretary added.