Economy & Policy

The Hungarian economy benefited a lot from the opening to the East

The Hungarian government began to open up its economy to Eastern countries 11 years ago to balance the country's foreign economic policy.

We knew that Eastern countries had high growth rates and were rich in resources. This strategic step has greatly contributed to the good performance of the Hungarian economy, said Minister of Foreign Affairs and Trade Péter Szijjártó.

We have been able to increase the volume of exports by 27 percent, and in the last five years, we have broken our Eastern export record. Most of the new investments in Hungary have been made by Chinese and South Korean companies in the last seven years. Despite the coronavirus epidemic, the value of our exports reached EUR 104 billion in 2020. With this, Hungary ranks 34th in the world in terms of exports, while in terms of population, the country is only 93rd in the world, he added.

Hungary and Tajikistan are geographically distant countries, but if five conditions are met, economic relations can develop well. As it turns out, all five conditions have been met, the minister said. 

The first is that political relations are in order and that the parties do not interfere in each other’s domestic policy. 

The second is to build direct relationships between people. As part of this, the Hungarian state provides scholarships to 20 Tajik students each year at a Hungarian higher education institution. Interest is growing, as 71 people applied for the 20th place this year, Szijjártó said.

The third condition is to promote physical presence and cooperation between Tajik and Hungarian companies, which is why Hungary will open a consulate in Dushanbe, he said.

The fourth precondition is the creation of a financial background. Exim bank has opened a USD 30 million credit facility here, which can be used to develop relations between Tajik and Hungarian companies.

And the fifth condition is the investment of a large Hungarian company in Tajikistan. Richter Gedeon has done this and will be possibly followed by other smaller companies. 

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