Economy & PolicyFacts & Statistics

Hungary’s economic measures have saved 1.4 million jobs

The Economy Protection Action Plan was the largest initiative ever in Hungarian economic history.

The government’s measures reached 720,000 enterprises in 2020 and have helped save 1.4 million jobs, László György, State Secretary for Economic Strategy and Regulation at the Ministry of Innovation and Technology, said.

The state secretary explained that due to the government’s actions, while unemployment rose to an average of 8 percent in EU member states and even exceeded 16 percent in the southern states, the rate in Hungary is only 4 percent.

György said that through wage subsidies, the government was able to assist 67,000 businesses, supporting the protection and creation of 360,000 jobs. Furthermore, investment incentives allowed the government to help nearly 20,000 businesses. One example of this has been the Kisfaludy Program, which has enabled 14,000 accommodations to be renovated. 

Through competitiveness programs, the government has additionally helped to maintain more than 200,000 jobs at 1,000 enterprises, while 52,000 transactions were concluded through loan programs supported by the state and the Hungarian National Bank (MNB), the state secretary stressed. 

György also pointed out that new tax incentives coming into force in 2021 will cut in half the business tax of 720,000 individual enterprises and SMEs.

Starting this January, the government is aiming to help Hungarian companies conquer new markets as well, he added. 

In the next period, companies will have access to zero-percentage loans, favorable capital schemes, investment-friendly training and employment aid — all to promote technological change and increase their competitiveness. The total amount of support available is close to HUF 5 trillion, György said, including loans supported by the state and MNB, as well as non-repayable development funds that can be claimed by enterprises.

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