HIPA-advised investments create 17,647 jobs in 2016, agency claims

Int’l Relations

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The Hungarian Investment Promotion Agency (HIPA) advised a total of 71 investment projects over the course of 2016, up 6% from the previous year, to a total value of EUR 3.243 billion, thereby creating 17,647 new jobs in Hungary, HIPA President Róbert Ésik claimed in an announcement today.

Of the 71 investment projects, 55 projects were realized as reinvestments, while 16 new investments were established in Hungary over the last year. As far as source countries are concerned, 15 investments arrived from Germany, 14 from the United States, six each from Great Britain and Switzerland, and seven from within Hungary.

The EUR 3.243 billion investment volume HIPA helped last year into Hungary is a 131% growth compared to the previous year, while the 17,647 new jobs created as a result of the investments agreed in Hungary last year represent a 36% growth compared to 2015, according to the agency. Germany dominates investments in terms of volume, as 52% of the total was invested by German companies, i.e. 32% of the new jobs, while U.S.-based company investments constituted 12.3% of the volume, i.e. 19% of created new jobs.

Automotive sector still leads the race

The automotive sector is apparently still one of the major engines of the Hungarian economy, as 66% of the total investment volume was covered by automotive companies. This represents 44% of the total of newly created jobs.

The SSC sector is also still strong, with 12 investment projects and 2,500 new jobs, followed by the food sector’s eight projects and 1,432 new jobs. As far as investment volume is concerned, the electronics sector placed second with EUR 341 mln, and the food sector third with EUR 258 mln.

In relation to similar organizations of the other Visegrád Four countries, HIPA closed the most successful year in 2016, according to published figures to date, in terms of both investment volume and newly created jobs, HIPA announced.

“Aside from ‘Made in Hungary,’ the emphasis is being put on ‘Invented in Hungary,’ therefore HIPA is planning to attract technology-intensive investments with higher added value to Hungary,” said HIPA President Róbert Ésik. He added that the recent lowering of the tax rate companies need to pay on profits to 9% is another attractive factor for FDI, as this is the lowest rate among European Union members.

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