German investors praise Hungarian market
Thursday, May 26, 2005, 07:08
Most German companies investing in Hungary are satisfied with the changes since European Union enlargement, business daily Világgazdaság reported relying on a recent poll by the German-Hungarian Chamber of Commerce and Industry (NMIKK). The research showed that only 4% of responding businesses said EU membership had negative effects in Hungary. Half of German companies polled said they expected to turn a profit on their Hungarian investments and predicted a profit rise of about 12 % on average this year. The German investors were satisfied with the state of Hungarian labor market but slammed the tax system and bureaucracy. They suffered from the government's delay in return payments of value-added tax at the end of 2004, which even caused liquidity problems in some cases. Poll showed that four out of five companies would still choose Hungary if an investment choice was given again, but still 20% would choose another country. This rate is less than 8% in the neighboring Slovakia.