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Confidence in Hungary remains strong, evidenced not only by the credit rating agencies’ assessments, but by the country’s bond issues, the National Economy Ministry said,according to MTI, pointing to multiple oversubscription for issues of bonds in euros, dollars and renminbi.
In spite of global challenges, Hungary has become a dependable partner for investors from the West and the East who see the country as a “meeting point”, it added.
The ministry said Hungary’s political stability, developed infrastructure, well-trained labor force and high returns on FDI made the country attractive to investors. In addition to investments from the West, the ratio of FDI from the East, from Chinese and South Korean companies, is on the rise, it added, noting the recent inauguration of the BMW plant in Debrecen as well as other investments by CATL, BYD, SEMCORP and EcoPro that will contribute to economic growth.
The ministry highlighted Hungary’s high employment rate and low number of registered jobseekers, increasing real wages, growing consumption, and strengthening tourism sector.
The ministry said Hungary’s finances were in order and the government remained committed to maintaining fiscal discipline and reducing the budget deficit and state debt levels, even while undertaking Europe’s biggest tax reduction programme.
The government is committed to reducing the fiscal deficit from year to year, keeping state debt levels on a sustainable path, avoiding any return to an excessive deficit procedure and keeping the primary balance close to zero.
The ministry said external factors, namely the weak German economy and the European Union’s unfavourable tariffs deal with the United States, posed the biggest risk to the local economy at present. It underlined measures to mitigate those factors, including programmes to set up new factories and scale up SMEs.
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