Ministry predicts 8% to 24% increase in FDI in 2014
Foreign direct investment could reach €2.5 billion to €3 billion in 2014, not including large individual transactions such as transit investments or state purchase of energy companies, according to a statement from the National Economy Ministry today.
Said increase would represent a year-on-year increase of 8% to 24.3% on the €2.3 billion in new FDI reported for 2013.
In the medium term, FDI is expected to average €3 billion to €3.5 billion a year, though the ministry cautioned this amount could be influenced by individual transactions.
The volume of FDI stood at €80.6 billion in Hungary at the end of 2013, the highest ratio as a percentage of GDP and the second-highest as a per capita ratio within the CEE region. Investments from the European Union accounted for 77.2% of FDI, while German investments alone made up 24.7%.
About 71.6% of all FDI (approximately €55 billion) went to the service sector in 2013, with another 20.1% (€15.8 billion) in manufacturing.
Reinvested profits in Hungary came to €1.2 billion last year.
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