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FDI job creation declines nearly 40% in Hungary last year

Foreign direct-investment (FDI) created 7,112 jobs in Hungary last year, down nearly 40% from 11,829 jobs created in 2008, professional-services company Ernst and Young revealed in its 9th European Attractiveness Survey.

Hungary placed 6th among 20 European countries examined in the Ernst and Young survey in terms of FDI-generated job creation in 2009, behind the United Kingdom with 20,017 jobs, France with 13,298 jobs, Russia with 11,734 jobs, Turkey with 10,819 jobs and Poland with 7,491 jobs.

Hungary placed 3rd among ten central and eastern European countries analyzed in the Ernst and Young survey in terms of FDI-generated job creation last year, behind Russia and Poland and ahead of regional peers Romania, with 6,384 jobs, Slovakia with 5,262 jobs, and the Czech Republic with 3,993 jobs.

A total of 64 FDI projects were initiated in Hungary in 2009, down 36% from 100 such projects in 2008.

Ernst and Young attributed the decline in FDI investment in Hungary last year to a lack of investor confidence in the central and eastern European region as well as fiscal, economic and political problems exposed in the country as a result of the global economic-crisis.

The survey noted that wages rose 95% in Hungary between 2000 and 2008, compared to an average rise of 22% in euro-zone countries during the same period. (MTI – Econews)