Pharmaceutical Industry is Key to Economic Growth and Competitiveness

Minister for National Economy Márton Nagy delivered the opening speech of the conference “The Competitiveness of the European and Hungarian Pharmaceutical Industry,” organized by the National Association of Hungarian Pharmaceutical Manufacturers (Magyosz). He addressed Hungary’s pharmaceutical sector’s importance, challenges, and potential for economic growth.

The Minister stressed the critical role of the pharmaceutical industry in the Hungarian economy, urging the sector to help achieve over 3% GDP growth in 2024. He emphasized that a new alliance with businesses, including pharmaceutical manufacturers, is essential for economic growth. “Everyone agrees that 3% growth is realistic, but we must work for it,” he said.

The pharmaceutical sector is a global leader, with Hungary ranking as the 20th largest exporter.

The sector accounts for 6.9% of Hungary’s manufacturing GVA, with high productivity per employee. In 2022, the pharmaceutical industry generated HUF 775B (EUR 1.6B) in GVA, contributing 29% of the manufacturing sector’s total R&D expenditure. However, the industry faces challenges, particularly weak domestic production due to slow exports. “Pharmaceutical demand is rising, but production remains weak,” Márton Nagy stated.

Hungary’s economic growth is vulnerable to external factors, such as the slowdown in the German economy, which affected exports.

Despite this, the politician expects 0.7% GDP growth in Q4 and forecasts 3–3.5% growth for 2024, with the government projecting 3.4%.

Consumption, however, is recovering, driven by retail growth, especially in e-commerce, food products, and pharmaceuticals.

Minister Nagy highlighted that the country’s pharmaceutical industry is essential for the economy’s future competitiveness. By strengthening domestic production and continuing investments in R&D, the sector can contribute significantly to Hungary’s economic success.

Via MTI; Featured Image: MTI / Lakatos Péter