Survey: 80% of foreign companies would reinvest in Hungary
Given the choice, 80% of foreign-owned companies would reinvest in Hungary based on the current situation, up from 71% in 2015, an annual survey of 227 companies carried out by the German-Hungarian Chamber of Industry and Commerce (DUIHK) showed, state-owned news agency MTI reported yesterday.
The investor sentiment index of the survey reportedly rose to 18 points from 10 points. The index reflects companiesʼ opinions of the economy, the companiesʼ own business prospects and expectations and revenue forecasts.
The biggest improvements cited by companies were in predictability and adherence to the rule of law, and minor improvements included reducing the tax burden, the survey found. Overall, companies surveyed reportedly said they still find the level of corruption and lack of transparency at public tenders dissatisfying.
The survey found that 38% of companies want to invest more this year than last year and only 15% are planning to cut back on investment. Based on companiesʼ answers, 43% of them are planning to hire new employees and 14% want to lay off workers. Investments and employment could both grow the most in the manufacturing sector, especially among bigger, export-oriented companies.
Companies said they are worried about a shortage of skilled workers, and 54% see it as a problem. A majority said they are satisfied with labor laws and the quality of local infrastructure.
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