The vast majority of manufacturing sub-sectors saw a decline in output, to the largest extent in the automotive sector.Continue reading
The German economic recession is pulling back the performance of Hungarian industry, the Ministry for National Economy told MTI on Thursday, commenting on the latest data of the Hungarian Central Statistics Office. However, there are encouraging signs of recovery in the domestic industry.
According to the statistical data, the volume of industrial production decreased by 5.3 percent in December 2024 compared to the same period of the previous year, and by 1.8 percent compared to the previous month, based on seasonally and working day adjusted data.
The performance of domestic industry continues to be dragged down by the crisis in the German economy, including weak external demand. The European Union is suffering from competitiveness problems, with Germany facing two years of recession and political and economic instability.
The German economy is currently undercutting the Hungarian economy, with knock-on effects on investment, exports and industrial performance through supply chains,
said the Ministry.
In Hungary, modern factories and capacities are available, but production is underutilized due to the crisis in foreign markets. However, there are already encouraging signs of recovery in domestic industry thanks to an increase in domestic demand, with computer, electronics, optical products, food, beverages and tobacco production all growing last December, they explained.
The Ministry pointed out that real wages have been rising in Hungary for more than a year and consumption is expanding. In addition, tourism had a record year in 2024, employment is high, the new and used car market is picking up, the number of housing transactions is growing dynamically, and household lending is also on the upswing.
The government is also working to make Hungarian SMEs more efficient and competitive. This is supported by the Demján Sándor Program, part of the 21-measure New Economic Policy Action Plan.
Through the Program, the government is providing HUF 1,400 billion (EUR 3.4 billion) to help domestic SMEs scale up and increase their productivity, thereby strengthening Hungarian industry. There are interest-free loans for businesses aswell, and the Széchenyi Card Program is even more accessible.
The recovery of the external markets and the forthcoming investments such as the factories of CATL, BYD, BMW, SEMCORP or EcoPro. These developments can also play a key role in economic growth, can give a new impetus to Hungarian industry, the Ministry emphasized.
Via MTI, Featured photo via Pixabay
