Hungarian Investment Promotion Agency

In the past few years there has been a shift in terms of the origin of foreign direct investments from the west to the east; however, both groups of investors remain equally important from the perspective of investment promotion, stressed Mr. Levente Magyar, Deputy Minister of Foreign Affairs and Trade. American companies have contributed tremendously to the economic development of Hungary ever since they started to invest after the fall of communism, so they deserve particular attention, he added.

The Hungarian economy needs more higher added value investments, and American companies can play a pivotal role in achieving that goal, Mr. Magyar noted. They now account for 9% of the total FDI stock, and between 2014 and 2023 alone 107 large FDI deals worth EUR 1.8 billion were closed with them to create 18,000 jobs.

Mr. Magyar added.

“As to the FDI volume, we are more than determined to reach new heights, and in that effort the contribution of American businesses is vital. We therefore continue to be enthusiastic to see US investments,” Mr. Magyar concluded.

Moving up the Value Chain

HIPA Deputy CEO Ms. Rita Szép-Tüske said. American companies, as they form the third-largest investor community in Hungary, can and do help make this happen to a large extent: in the past 9 years they launched the most FDI projects in the BSC and ICT sectors. Last year alone they announced to create more than 1,000 new jobs, many of them in those high-added value segments.

The overall FDI landscape looks very promising which is key to boost growth, Ms. Szép-Tüske added. HIPA breaks investment volume records year after year: following last year’s EUR 6.5 bln it is already a fact that in the first half of 2023 deals worth EUR 8.1 bln were closed.

The Hungarian economy faces a mixture of unique challenges such high inflation, suspended EU funds, energy prices and labor shortage, not to mention the critical circumstances in health care and education. Now, all these issues need to be addressed for the sake of long-term competitiveness, AmCham Hungary President Zoltán Szabó said. “We have a bumpy road ahead, but we are keen to work with the ministry and HIPA together for a more resilient, competitive and sustainable Hungary,” he said.