The government has protected jobs! Thank You!
Industrial production has grown the most in Hungary!
Among the TOP3, the Hungarian investment rate in the EU!
The Hungarian industry has a balanced structure, it stands on several legs!
An industrial investment of HUF 1,700 billion is in progress!
What is it due to and what are we doing to further expand it?
The growth of the Hungarian economy in the first quarter will not depend on the industry. Domestic industry expanded by 4 percent in the first quarter, despite the fact that the automotive industry, which has the highest weight and growth potential, even fell by 3.6 percent. All this shows that the Hungarian industry has a balanced structure and stands on several legs.
In addition, the temporary stagnation in the automotive industry did not happen because there were no orders or the Hungarian workforce and the companies operating in Hungary would not be competitive. The global raw material supply chain has simply emerged, which has had a negative impact on the world's automotive industry, including Hungary.
The data also indicate that there is huge growth potential in Hungarian industry this year. If the supply problems caused by the COVID-19 crisis affecting the operation of the world economy are resolved and the restrictive measures are alleviated not only in Hungary but also elsewhere, there will be a significant demand for our industrial products. Let us not forget that in Germany alone, hundreds of billions of euros in extra savings were made in 2020 from the fact that families simply could not spend their disposable income during the epidemic. This is almost three quarters of the annual performance of the Hungarian economy - GDP. The savings rate of Hungarian households also increased, by almost 30 percent compared to the pre-crisis level, which could have resulted in additional savings of up to HUF 700 billion in 2020.
We are working to give Hungarian industrial capacities an even bigger role in meeting the soon-to-increase global demand. That is why, when creating the economic protection action plan a year ago, we decided to allocate HUF 1,000 billion in investment incentives in order to maintain the investment level, which helped to realize the investment exceeding 4 percent of the Hungarian GDP. Due to this, the Hungarian investment rate after Estonia and Ireland is the third highest in 2020 (27.3 per cent), which is almost 6 percentage points higher than the EU average (Figure 2).https://bit.ly/2RUT0ZO
So far, we have been working to keep businesses from delaying their capacity-building investments, and now we are working to keep the investment rate high. At present, more than 1,700 billion forints of industrial investment is “in the pipeline”, as many domestic and foreign companies operating in Hungary have announced in the recent period (Chart 3).https://bit.ly/3y4VFAO
This is the key to creating competitive jobs that can pay higher and higher wages in Hungary. Thus, this 10-year-long consistent investment-promoting economic policy played a central role (Figure 4) in the fact that in March, industry grew the fastest in Hungary in the entire EU.https://bit.ly/33K8Xow
️ By reading the posts on my Facebook page, it is worth clarifying some issues. Hungary did not become severely vulnerable to international economic processes, actors and companies in the 1990s, but in the 1990s, during the time of the balliberal governments that professed neoliberal - that is, extremely market-oriented - economic policy principles. At that time, economic policy did not differentiate between foreign and less favorable foreign investments for Hungary, and did not pay enough attention to supporting Hungarian companies. On the other hand, we believe that Hungarian companies are the first to give us the most help, but we also welcome all foreign investors who bring the technologies of the future, thus bringing the demand of the future to Hungary and thus providing long-term work for Hungarians.
Our goal is also for foreign companies that dominate world markets to find the Hungarian economy attractive, because through them we can increase the performance of the Hungarian economy by earning extra income from export markets. At the same time, we are working on what neoliberal economic politicians before 2010 did not address: so that Hungarian suppliers can join and integrate into the value chains of these companies in the right proportion and on fair terms. This is also important because Hungarian companies can thus acquire the knowledge that enables them to produce their own product, the skills needed to increase their productivity and thus their wages, and they can become multiv, Hungarian multiv.
At the same time, we do not forget about Hungarian micro, small and medium-sized enterprises. For us, they are the first. That is why we are launching more than HUF 400 billion worth of investment incentive programs for them in the next period (this means an average of HUF 10 million per employee) to invest in the technologies of the future and become a stable Hungarian company or a Hungarian multivale capable of gaining a foothold in export markets. That is why we created VALI (www.vali.hu), personalized entrepreneurial information and the Modern Model Plants program (www.modem4.hu) so that our entrepreneurs can find customized business development opportunities in three clicks and learn about the technologies of the future in action.
This is how our economy will be Hungarian, high-tech and green. Come on, patriots, come on, Hungarian entrepreneurs!