Judging by the data available for this year the Hungarian economy is expected to produce its highest export figures of all times, minister for foreign affairs and external trade Péter Szijjártó said at the Hungarian Export Day in Budapest on Thursday.
The performance of Hungarian foreign trade is proof of the economy’s growth pattern, he added. He said exports had already reached record levels in the previous year.
In his welcome remarks at the first Exports Day organised by Eximbank Mr Szijjártó stressed that on the basis of data available for the first eight months so far Hungarian exports have increased by 3 per cent this year, with the pharmaceutical industry and mechanical engineering contributing the most. In the first 8 months only Hungary’s exports to 34 countries already surpassed volumes registered in the whole of last year and reached 90 per cent of 2015 export figures in respect of a further ten countries.
Last year Hungarian exports grew by 7 per cent, making the country the 35th largest exporting economy, he added. Mr Szijjártó announced that Hungary has been chosen to host the world forum on export development in 2017.
He said external market success for the country and its SMEs has been assisted, among others, by government institutions. Representations of the Hungarian National Trading House are operating in almost 60 countries around the world, and another 9 will be added next year.
The minister mentioned that 79.1% of exports are realised with EU member states, whereas the strategy of opening to the East and South between 2010 and 2015 has increased exports to the countries concerned by 7 to 9 per cent. The ratio of exports to GDP reached 89% in the first half of 2016.
According to Mr Szijjártó Eximbank’s loans have reached HUF 745 billion and the bank now has 890 customers, which represents 45% growth since the middle of 2015. New lending by the bank in the first 6 months amounted to HUF 153 billion or an increase of 12.5%, with 57% of credits going to small and medium-sized enterprises.
He said that Eximbank’s activities produced HUF 191.4 billion export surplus and HUF 31.3 bn surplus in domestic production in the first half of the year, bringing Hungary’s nominal GDP up by HUF 151.5 billion.
Mr Szijjártó reminded that the Hungarian economy is on a growth trajectory, having adopted a novel approach and unconventional economic policies since 2010. The past six years have proved that, contrary to long-held economic dogma, there is no need to choose between growth, the creation of new jobs and budgetary discipline, he said.
It is possible to improve competitiveness at the same time as there is an increase in salaries, he added. The new economic policy is based on significant tax reduction, which brings new investments and jobs for the country. Lighter taxation enables continuously raising salaries. By reducing the corporate income tax rate Hungary will offer the most competitive investment environment.
Eximbank chief executive Zoltán Urbán said the first Hungarian Exports Day provides a professional information exchange forum on export-related matters, as well as opportunities in support of entrepreneurs and investment incentives.
Statistics are showing that world trade shrunk by 13 per cent in 2015. Meanwhile, Hungarian exports rose by 7 per cent and Eximbank increased the volume of its export-related lending by 30 per cent.
Source: tradehouse.hu
