Press News
84% of German businesses in Hungary would again choose Hungary as their investment target
Budapest, July 14, 2003
On July 14, 2003 Elek Straub, president of the German-Hungarian Chamber of Commerce and Industry (NMIKK), and Wolfram Klein, member of the managing committee, presented the 2003 competitiveness report of the Chamber. The report, which was published for the eighth time this year, is based on a survey involving over 1000 Chamber member companies. Elek Straub met the press for the first time in his capacity of president of the Chamber since his election in May. Both speakers underlined that 84% of the German businesses in Hungary declared that they would choose Hungary again as a target for their investments, 15.2% would repeat their investment in a modified form. This represents assets which Hungary must make every effort to utilize, stressed Elek Straub.
According to the
findings of the report (the detailed results of the NMIKK
competitiveness survey are contained in the Competitiveness Survey
2003. The situation and expectations of the businesses with German
interest in Hungary) the German investors also made it clear that the
general investment conditions are no longer as favorable as they used
to be, and that Hungary's attraction has faded. The main factors
detracting from the general investment conditions are high costs and
the poor world economic environment. Still, the German-owned businesses
operating in Hungary continue to be satisfied with their performance.
The majority of foreign investments made in Hungary since 1989 have
been implemented by German businesses. They have founded Hungarian
companies, invested a total of 12 billion EUR and are employing more
than 200 000 people. German-owned businesses play an important role in
the society too, spending on average 2.9 million HUF each annually on
cultural and charitable purposes.
Although the average revenues of the businesses operating in Hungary
grew in 2002, this was the smallest growth over the past eight years.
Even though the cost increase has also been substantial, it remains
below the level forecast last year. Net income planned for 2002 shows
nominal increase, but the rate of growth is slower than in the
preceding years. In 2003, the companies are reckoning on growth similar
to 2002 for revenues, profits and costs.
The companies consider that there is a need, among other things, for
modernization of the public administration structure, adoption of a
calculable economic policy, reduction of taxes and contributions, and
the upgrading of education and health care in Hungary.