The European Bank for Reconstruction and Development (EBRD) on Thursday said its board approved a new country strategy for Hungary, setting out priorities for the period 2021-2026.
The EBRD said it will “pursue support for productivity improvements, through innovative financing and green investments as strategic priorities” as well as “provide temporary support, as needed, for the country’s recovery from the coronavirus pandemic”.
“The [EBRD] will continue to focus on developing capital markets and on opportunities to deploy equity and innovative investment products and, where appropriate, will seek to address inclusion and governance issues. There will be a clear focus on supporting projects in the areas of resource and energy efficiency, decarbonisation and renewable energy,” it added.
The EBRD has invested close to 3 billion euros in Hungary through 190 projects since 1991.
The new country strategy said GDP growth in Hungary was the strongest among its peers over the past five years. “Between 2014 and 2019, the average GDP growth rate reached 4.1 percent in Hungary, significantly above the average growth rate of 3.3 percent seen in the other CEB economies,” the EBRD added.
Hungary registered the strongest GDP growth in the CEB region, at 4.6 percent in 2019, the report said. Overall, investment level was the highest in the region in 2019, at 28.6 percent of GDP, substantially above the CEB average of 21.5 percent of GDP, it added.
The EBRD said it expected the Hungarian economy to return to growth this year, after recession caused by the coronavirus epidemic.
It added that the EBRD plans to focus its activities in Hungary on areas where the country is still facing transition gaps.
Featured photo illustration by György Varga/MTI