news letter Our mobile application

Weekly newsletter

Hungary is expected to see an increase in economic capacity from the second quarter of 2021 after businesses begin running the new technologies and machinery they invested in through the government’s investment support scheme, Péter Szijjártó, the foreign affairs and trade minister, said on Tuesday.

The government has supported the investments of 1,338 Hungarian companies with grants totalling 336 billion forints (EUR 932.0m) in the recent period, Szijjártó said at his annual hearing in parliament’s economic committee. The companies’ investments are worth a combined 824 billion forints and have saved 264,500 jobs, he added.

Hungarian Economy Bounces Back in Third Quarter
Hungarian Economy Bounces Back in Third Quarter

The Hungarian economy did better than expected in Q3, bouncing back 11.4% compared to the previous quarter. In the first three quarters overall, economic output fell around 5.5%. Year-on-year, GDP was down 4.6% in Q3. Almost half of this came from the service sector, more than a fifth was due to declining output in the […]Continue reading

The minister noted that during the first wave of the coronavirus pandemic in the spring, the European Union increased the limit on state aid for investments to 800,000 euros. The Hungarian government then decided to reimburse under a similar scheme up to half of the investment costs of businesses that retained jobs, capped at the 800,000 euro limit, Szijjártó said. Under this scheme 904 companies have invested a total of 421 billion forints which the government has matched with 201 billion, he said. As a result a total of 154,200 jobs have been saved, he noted.

Employment Down by 0.8% in August-October
Employment Down by 0.8% in August-October

The three-month rolling employment figure in August-October was down 0.8 percent at 4,482,000 from the same period a year earlier, the Central Statistical Office (KSH) said on Friday. In the 15-64 age group, 4,402,000 were considered employed, an employment rate of 70.2 percent. In October, the average monthly number of employees was 4,451,000, 31,000 less […]Continue reading

Szijjártó noted that as the EU temporarily lifted the 800,000 euro threshold, the Hungarian government disbursed grants totalling 70 billion forints. In that phase, 71 businesses made investments worth a combined 204 billion forints. The scheme helped preserve a total of 60,000 jobs, the minister said.

Investment Volume Falls by 12% in Q3
Investment Volume Falls by 12% in Q3

Investment volume in Hungary fell by an annual 12.0 percent in the third quarter of 2020, the Central Statistical Office (KSH) said on Thursday. In a quarter-on-quarter comparison, investment volume fell by a seasonally-adjusted 2.1 percent. Investment volume fell in most economic sectors but jumped by 98.4 percent in health care due to pandemic-related spending, […]Continue reading

He noted the continuation of investment incentive schemes launched before the outbreak of the pandemic in Hungary. These so far have yielded 73 agreements on investments worth a total of 2 billion euros that are creating 8,000 jobs, Szijjártó said. Most foreign investors, 14, are German, followed by 13 American and 9 Chinese peers, he said.

Featured photo illustration by György Varga/MTI