German companies satisfied with Hungarian business environment

Competition

German companies operating in Central and Eastern Europe are satisfied with the economic situation, according to a recent study conducted by the German Chamber of Industry and Trade (DUIHK). More than 1,600 managers participated to the survey.

Given the strong economic growth, the outlooks for the national economy, the sector and the company in particular have improved in all countries in the region, according to the 1,698 respondents who participated to the study, a press release sent to Budapest Business Journal says.

On a regional level, the current economic situation and the outlooks for this year have not been this high since the period preceding the crisis in 2007.

The respondents estimate that the strong GDP growth, between 3% and 7% in the region will remain this year. Based on the high domestic and foreign demand, German companies are planning more investment and more hirings in most of the countries.

However, there are problems also, mainly related to the qualified labor force. The most acute labor shortage is experienced in Czech Republic, Hungary, Slovakia and Bulgaria. Managers are also unsatisfied with taxation, the rule of law, corruption and transparency of public procurements, with corruption ranking very high in the top list of unsatisfactory factors.

Despite the shortcomings in some areas, the majority of German companies (four out of five) consider that their location choice has been a good one. As for the best investment location, Czech Republic ranked first in manager preferences, followed by Poland, Slovakia and Estonia

The full study is available here.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

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.