Opening to the East is reasonable regarding the external trade of Hungary, as the growth engine of the global economy is already outside Europe, Deputy State Secretary for External Economic Relations Balázs Hidvéghi said at the joint conference of the economic daily Világgazdaság and the Hungarian Foreign Trade Association, on Thursday in Budapest.

The Deputy State Secretary also added that external trade relations can be promoted by establishing trade chambers on Eastern markets, either indirectly via supplier networks or with the help of third countries.

Presenting the external trade strategy of the Hungarian Government, Mr. Balázs Hidvéghi said that the Government expects exports to double, reaching 140 billion euros as a whole and the exports of small and medium-sized enterprises (SMEs) to grow two-fold, reaching 12-15 billion euros. Foreign direct investments in Hungary and the amount of external investments by Hungarian companies are also anticipated to double.

According to Deputy State Secretary Hidvéghi, increasing exports serve domestic economy objectives such as economic growth as well as growth in employment. A rise in exports can also contribute to the improving of external balance of payments.

In his evaluation of Hungarian external trade, the Deputy State Secretary stated that Hungary’s economy is outstandingly open and hugely dependent on foreign trade. Exports of goods and services amount to 87% of GDP, and a significant share of exports is directed to member countries of the European Union.

“Since 2003 Hungarian exports have more than doubled and we have good reason to be proud of the 7 billion euros external trade surplus of last year”, Deputy State Secretary Hidvéghi announced.

The Ministry welcomes investors who aim for long term strategic investments and are also encouraged to establish regional partnerships, the Deputy State Secretary said, adding that cities and counties have play a key role in this regard.

He also mentioned that stimulating investment in the Carpathian Basin is a priority, and not only in Hungarian-speaking regions. “A market potential of 50-60 million euros is reasonable and once market presence has been established there, export growth will gain a new prospect.”

According to Deputy State Secretary Hidvéghi, in order to strengthen external trade relations in the Carpathian Basin the Hungarian Government has several instruments at its disposal, such as supporting the creation of regional clusters, subsidizing SMEs and prioritizing strategic project elements, structural- and transport support as well as the promotion of regional vocational training and adult education.

(Ministry for National Economy)