EIU: It’s getting harder to do business in Hungary
When it comes to providing a good place to do business, Hungary ranked 40th out of 82 countries worldwide, and eighth out of 16 Eastern European countries, according to the Economist Intelligence Unit’s Business Environment Index, which was released yesterday.
Hungary’s position in the ranking has dropped since last year, when the country placed 35th worldwide and fifth in Eastern Europe. The index looks at a range of factors that determine how easy it is to do business in 82 different countries.
According to the EIU, Hungary’s high taxes, political environment and high levels of debt are the biggest drawbacks to doing business here. "Although the country's openness to trade favourably influences the investment climate, the large tax burden and increased concerns over the tone and unpredictability of the government's policy towards foreign investors weighs on the overall score," the EIU was quoted as saying.
"The high levels of debt—which are well above the regional average—will continue to pose risks to macroeconomic stability in the next five years. However, despite a more challenging business environment, Hungary continues to represent a desirable investment location for foreign firms, particularly in the automotive sphere, owing to its proximity to the EU market."
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