Perceptions of Hungary’s economic situation among German chief executive officers as well as the commitment of German enterprises to the country have improved: 73 percent of investors would once again pick Hungary as their investment destination. Enterprises are satisfied with the regulatory reform of the labour market, which in regional comparison places Hungary among the best locations for foreign investment.

In the Investment Climate Survey of the German-Hungarian Chamber of Commerce for this year, the perceptions of German investors have significantly improved with regard to several indicators. CEOs regarded the flexibility of labour regulations as above average, which is definitely a result of the new Labour Code that entered into effect last summer. Infrastructure conditions, employee qualifications and productivity as well as their locality and the availability of local suppliers were also given high scores. German enterprises spoke in high terms of the Government’s measures aimed at cutting red tape and related dialogue, and of efforts to engage company representatives in consultations. German enterprises are satisfied with public administration; in this field Hungary has performed better in comparison to its regional competitors.

In the opinion of the Government, the year 2012 was fruitful with regard to German-Hungarian relations. Trade volume with Germany posted an above-par increase over last year; Hungarian exports to the country exceeded EUR 20bn for the first time ever and this figure is higher than Hungary’s total exports to non-EU countries. According to data from the National Bank of Hungary, in 2012 the amount of working capital invested in Hungary also broke the EUR 20bn mark.

Hungary has until now and will in future consider Germany as a special economic partner. The Hungarian Government pays special attention to dialogue with German-owned enterprises, and together with its German partners intends to continue its efforts to improve business confidence. After the era of profound changes, there now comes a period of stability and predictability, which is expected to strengthen bilateral partnership. As his first visit abroad, the Minister for National Economy travels to Germany. During his two-day stay in Berlin, Mihály Varga will first meet with representatives of the most significant economic organisations and German enterprises with investments in Hungary.

(Ministry for National Economy)