Ministry predicts 8% to 24% increase in FDI in 2014
Foreign direct investment could reach €2.5 billion to €3 billion in 2014, not including large individual transactions such as transit investments or state purchase of energy companies, according to a statement from the National Economy Ministry today.
Said increase would represent a year-on-year increase of 8% to 24.3% on the €2.3 billion in new FDI reported for 2013.
In the medium term, FDI is expected to average €3 billion to €3.5 billion a year, though the ministry cautioned this amount could be influenced by individual transactions.
The volume of FDI stood at €80.6 billion in Hungary at the end of 2013, the highest ratio as a percentage of GDP and the second-highest as a per capita ratio within the CEE region. Investments from the European Union accounted for 77.2% of FDI, while German investments alone made up 24.7%.
About 71.6% of all FDI (approximately €55 billion) went to the service sector in 2013, with another 20.1% (€15.8 billion) in manufacturing.
Reinvested profits in Hungary came to €1.2 billion last year.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.