ADVERTISEMENT

Foreign firms generate 64% of IT sector revenues

Telco

Foreign-owned non-financial companies posted a combined total of HUF 45,000 billion sales revenues in Hungary in 2016, 2.3% less in current prices than in 2015, show research findings based on preliminary data released by the Central Statistical Office (KSH).

Foreign-owned companies and the subsidiaries of foreign companies employed 25.9% of all corporate employees, but accounted for 52% of all revenues, according to a summary of the findings by state news agency MTI. Foreign companies provided 57.5% of all production value, 50.8% of all added value, and 45.4% of all gross investment in the corporate sector, it added.

Foreign-owned companies derived 84% of their revenues from three sectors in 2016 - namely, manufacturing, commerce and the energy sector - while they accounted for 64% of all revenues in the IT sector. Foreign-owned companies had 5.7% lower revenues from manufacturing than in the previous year.

In current prices, added value from foreign-owned firmsʼ production reached HUF 8,900 billion in 2016, down 1.2% compared to 2015, while in the whole business sector it was up by 2% on average.

Gross investment of foreign companies reached HUF 2,100 bln, with an annual growth of 3.4%, outpacing the total average investment growth of 1% in the business sector.

Foreign companies employed 689,000 workers last year, 2.1% more than in the year before. Employment growth throughout the entire business sector was 2.6%, the MTI report noted.

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.