Hungarian CEOs are markedly more concerned about the labor shortage than their global peers (95% and 79%, respectively) according to the seventh PwC Hungarian CEO survey. But this year the tone of the survey was more upbeat than 12 months earlier.

The German-Hungarian Chamber of Industry and Commerce (DUIHK or AHK Ungarn) awarded its Vocational Training Prize on March 8 for the fifth time, selecting two companies and a vocational school in three categories, from 39 applicants.

The complexity of the Hungarian election system is already the stuff of legend: according to one tale, after an expert had outlined the intricacies to American observers in Budapest for the 1990 elections, one visitor supposedly retorted: “Now I understand why a Hungarian invented the Rubikʼs Cube.”

Like many Budapest residents, on the eve of the March 15 holiday, I was shopping for last-minute provisions. I also had to pay some bills, but I didnʼt know where the post office was in the Kőbánya-Kispest mall.

In the light of the latest macroeconomic data, there are good reasons for optimism: analysts now say that Hungary’s GDP growth could again exceed 4% in 2018, and many expect a two-digit growth rate in wages. However, some warn of inflationary pressure.

The American Chamber of Commerce, representing more than 360 businesses, published its third “Cooperation for a More Competitive Hungary” recommendation package this January. The document was sent to Prime Minister Viktor Orbán and his cabinet shortly after, as part of an ongoing dialogue. AmCham President Dr. Farkas Bársony and CEO Írisz Lippai-Nagy talked to the Budapest Business Journal about the work behind scenes.

The Hungarian industrial and logistics market is recording high demand for a limited supply of well-located, quality contiguous space, so that tenants have to plan far in advance in order to source space. Annual take-up for 2017 reached a record 618,000 sqm.

Hungary’s logistics providers are likely to stay on a growth path this year and remain a key driver of the economy, but the lack of skilled professionals continues to be a risk and protectionist steps on Western European markets a danger.

Logistics sector development is hampered by labor shortages, but most segments are growing in an increasingly legal market Zsolt Fülöp, president of the Association of Hungarian Logistics Service Centers (MLSZKSZ) tells the Budapest Business Journal. His association represents nearly 90% of the Hungarian logistic centers, covering the entire area of services. It has 74 members, whose total revenues in 2016 were some HUF 410 billion (EUR 1.3 bln). 

Demand for Central European industrial space is continuing to rise with the industrial and logistics market recording positive indicators across the region: Hungary, Czech Republic, Poland, Romania and Slovakia. 

Following the record set in 2016, Budapest’s Ferenc Liszt International Airport again carried previously unseen amounts of cargo volumes during 2017. The airport’s operations seem to be flying high on all fronts, with growing passenger numbers, and continuous developments.

As with other market sectors, specification, sustainability, interior design and fit-out are increasingly central issues for industrial project owners in attracting tenants.