Foreign firms generate 64% of IT sector revenues
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.
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