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Economy & Policy

Szijjártó: Only new investment will help Hungary avoid recession in Europe

Investment is the only way for the Hungarian economy to avoid the recession in Europe caused by the war in Ukraine and the sanctions response.

Speaking after a ceremony to mark the expansion of Thyssenkrupp’s factory in Jászfényszaru, Minister of Foreign Affairs and Trade Péter Szijjártó said that the state would provide HUF 4.7 billion in funding for the HUF 15 billion investment, which will help create 110 new jobs. 

The German company is expanding its production facilities for electromechanical steering systems as part of the project. The steering systems produced in Hungary are used in 109 countries around the world, and the country ranks fifth in the world for exports of electromechanical steering systems, he said. 

Szijjártó said the most important question for the Hungarian government is whether it is possible to avoid a recession in Hungary.

The minister stressed that the automotive sector is leading the way in record investment and that this is particularly significant given that the revolutionary transformation of the sector is now the most dominant process in the global economy.

“The record number of modern automotive investments coming to Hungary is a guarantee that, despite the recession in Europe, the Hungarian economy will

remain on a growth path,” he said.

Szijjártó said there was a good chance that Hungary’s automotive industry would break another record this year and reach HUF 10 trillion, after the sector’s production value had already exceeded HUF 5.5 trillion in the first six months of the year.

On the subject of Hungarian-German economic relations, he said that the volume of bilateral trade almost reached EUR 60 billion last year and was already over EUR 30 billion in the first half of this year, so there is a good chance of a record in this area as well. German companies are the largest investor community in Hungary, employing some 6,000 companies and around 300,000 people, he added.

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