Hungary decided to intervene on Israel's behalf in the international court proceedings brought by the Palestinian Authority against Israel.Continue reading
Today, Hungary has one of the closest relations with the Middle Eastern country, and this is reflected in the current war situation, shows a recent analysis by the Oeconomus Economic Research Foundation. Political and economic events in recent years have allowed the two states to work even more closely together, taking what was already a stable alliance to an even higher level, reports Világgazdaság.
Hungary established diplomatic relations with Israel shortly after 1948. This remained in effect until 1967, the year of the Six-Day War, when at the instigation of the communist leadership in Hungary, relations had to be broken off. Following the regime change in 1989, Hungary was among the first Eastern Bloc countries to begin to re-establish diplomatic relations with the Middle Eastern state, now covering a wide range of areas.
It is not just political rhetoric that has boosted Hungarian-Israeli economic relations over the past ten years, but the figures also show that cooperation between the two countries is becoming increasingly intense: trade turnover last year reached a record USD 750 million.
Both exports and imports have increased significantly compared to 2021, and the growth is set to continue this year unless the escalation of the war overwhelms companies’ plans.
The 2023 Israel-Hamas War began on the morning of the Jewish holiday of Simchat Torah, October 7, 2023, when Islamist terrorist organisations led by the Palestinian Hamas in the Gaza Strip launched a major attack on Israel. Photo via Pixabay
Cooperation between the two countries extends to security and achieving stability in the Middle East. Hungary participates in the fight against the international mainstream that unilaterally stigmatizes Israel, and Hungary supports the relations between the Jewish community in Hungary and the Hungarian community in Israel, and the global fight against antisemitism. Our country supports the strengthening of economic, scientific, and innovation cooperation between Hungary and Israel in order to create stability in the Middle East. The development of economic partnership is illustrated by the fact that
since the 2000s, the value of Hungarian product exports to Israel has been increasing steadily and substantially.
Bilateral foreign trade is characterized by Hungarian activity, with a significant share of vehicles and transport equipment, electronic equipment, poultry products, pharmaceuticals, and chemical products. Israeli products entering the country include mainly chemicals and pharmaceuticals, medical devices, electronic equipment, plastic goods, and automotive parts.
Israeli imports of goods into Hungary in 2021, amounted to USD 224 million.
For capital investment between the two countries, the years 2020 and 2021, are considered to be the most productive years. Between 2008 and 2020, foreign direct investment (FDI) of Hungarian origin dominated bilateral capital inflows.
In 2015, a higher value of capital inflows from the Middle East was achieved.
In Hungary, Israeli investors can be found mainly in the pharmaceutical and medical devices (Teva Pharmaceuticals, Celitron Medical Technologies Ltd.), navigation software (NNG Software Developing and Commercial Llc), chemical products (Well Done St. Moritz Manufacturing), and furniture manufacturing sectors (Cardo (Furniture and Mattress Production) Ltd.). Hungarian companies can be found as potential investors in Israel in the water management, agriculture and irrigation, ICT, research&development, knowledge, and technology transfer sectors.
Overall, economic, political, and diplomatic relations between the two countries have been balanced over the past decades. Hungarian foreign policy regards Israel as an important ally, and Hungary wishes to support the Middle Eastern state as much as possible, even in the current war situation.
Via Világgazdaság, Featured image via Pixabay
