Hungarian-German Economic Relations Keep On Thriving Even In Crisis Stricken Times
2023. 01. 02.
The Hungarian Investment Promotion Agency (HIPA) and the German-Hungarian Chamber of Industry and Commerce jointly assessed the state-of-play of economic relations of the two countries whereby it was established that German investors’ trust for the Hungarian economy is unbroken, and major German-Hungarian success stories have come to fruition even in crisis stricken times like these. It is very much telling that this year not only bilateral trade should break previous records, but German investor activity proved to be strong as always with respect to HIPA-guided projects as well.
The role of German businesses is crucial beyond any doubt for the development of the Hungarian economy which is best showcased by the fact that such companies make up for the largest investor community in the country, accounting for some 21% of the total FDI stock according to the data of the Hungarian National Bank (MNB). The significance of key partners couldn’t be bigger in crisis stricken times like these; therefore, it is particularly pleasant that German investors’ trust is unbroken for the Hungarian economy, as was established at a joint consultation of HIPA and the German-Hungarian Chamber of Industry and Commerce (DUIHK).
HIPA CEO István Joó said.
DUIHK President András Sávos emphasized at the meeting that for numerous German businesses Hungary is of strategic importance as purchase and sales market and production location. This is also evidenced by the fact that these past years the bulk of German investments concerned extension- and modernization-focused developments of companies already operating here in value of EUR 2-3 billion, two-thirds of which are implemented in the processing industry.
The 2022 developments certainly give reason to be hopeful. Bilateral foreign trade grew by 12.7% in the first nine months, and it is more than likely that its value would exceed the EUR 60 billion threshold for the first time.
This year has also been full of German-related success stories. BMW’s EUR 2 billion iFactory broke ground in Debrecen, Mercedes-Benz announced a EUR 1 billion development in Kecskemét, whereas Audi celebrated the extension of its new tool factory. Worth to note in this regard that apart from Germany and China only Hungary hosts a manufacturing site of the three above-mentioned premium OEMs. On top of automotive, major announcements were made in a number of other sectors as well.
Mr. István Joó highlighted.
Having regard to the fact that one-fourth of the bilateral trade volume is related to Germany, which makes it Hungary’s most important foreign trade partner, it is in both parties’ strategic interest to mutually maintain high economic activity. This objective is supported by HIPA’s full-scale investment promotion services as well as DUIHK that, celebrating its 30th business anniversary next year, remains at the disposal of Hungary-based German companies with a wide range of consultancy services.