Up until 2019, Hungary boasted a commendable an 4,9% growth, but like anywhere its economy is poised to shrink markedly this year as a result of COVID-19. Most optimistic experts forecast a 3% contraction this year, followed by a substantial 5% rebound in 2021, betting on the country’s vigorous pre-crisis economy and its successful containment of the epidemic to propel the recovery. Hungary’s status vis-à-vis other countries in the world is enviable. Despite drops in most key indicators, Hungary is still better off than most of its European peers. The economic protection action plan launched in April has helped save 120,000 jobs. Whether or not the new “war plan” drafted by the Government will provide a sufficient buoy to fight the second wave and reach these projections remains to be seen.
In spite of the current crisis, Hungary’s investment climate has remained favorable, especially in the manufacturing, services and construction sectors, all key growth drivers. Its favorable tax regime with a reduced corporate tax and social security contributions, coupled with its strong legal framework and diverse investment schemes, are the foundations Hungary relies on to attract foreign investors. Merger and acquisition activities have intensified in the past few years, driven by several market and some state transactions. Last year saw the highest ever number of major investments in Hungary. Large-scale projects and investments in future technologies are also under consideration by the government, while the Hungarian property market has drawn a lot of attention, offering the highest returns in the CEE region.
Country Reports’ special feature on Hungary will provide exclusive insights, analysis and fresh perspectives on these topics, based on our team’s exclusive exchanges with top political and business leaders.
Distributed exclusively on Newsweek.com reaching a vast readership of 45 million, our special feature will be promoted both through a banner placed on Newsweek’s homepage for a week, and a full-page article inserted in Newsweek’s international print edition ensuring large visibility and awareness for the reader. The feature on Hungary will also be hosted in the Newsweek library (www.newsweek.com/newsweek-country-reports) for two full years.