On October 1st, 2019 Inspiring Hungary conference, showcased the country’s key assets and innovation abilities throughout clusters, keynotes and round tables. Organized by the Hungarian Investment Promotion Agency (HIPA) in partnership with the AmCham Hungary and the German-Hungarian Chamber of Industry and Commerce, the conference attracted 400 international companies and investors in Budapest.
In 9 years, since its economic crisis, Hungary has become the European place to invest in innovative industries, reaching 5,1%, GDP growth rate in the first half of this year, one of the highest in the European Union. In this period more than 820,000 jobs were created in a country of close to 10 million inhabitants.
As today, with a budget deficit under control and a 70% employment rate, the country has become an industrial hub in Europe, attracting international investors in key sectors: automotive, electronics, life sciences and food industry as well as financial and business services.
“Our clear target is to be above the average European growth by 2%” declared Peter SZIJJARTO, Hungarian Minister of Foreign Affairs and Trade.
During a cross-talk with the former Spanish President José María AZNAR, Nicolas SARKOZY, former President of the French Republic, recognized the central role of Hungary in Europe, one of the most dynamic countries and a “bridge between Eastern and Western Europe”.
Audi, Nestlé, Sanofi, Daimler, Siemens… during their long-term presence, more than 40 of the world’s 80 largest companies - and many of their respective SME suppliers – could benefit from a competitive and highly skilled workforce, access to world-class universities, an advantageous location within Europe and business-friendly financial environment.
With one of the lowest tax rate in Europe, the Hungarian economy is now reinforcing its incentive measures in order to enhance its level of technology, added value and R&D. At this occasion, the Hungarian Minister of Foreign Affairs and Trade announced a new investment promotion system not based on the amount of jobs created anymore but based on R&D investments:
“With our new system, if companies introduce new technologies, bring new machineries, introduce new processes, in order to maintain or upgrade the competitiveness of the country, without creating any new jobs, they still will be eligible for the same cash incentive - up to 50% of the volume of the investment”, said Peter SZIJJARTO. “The goal is no longer to create workplaces but to strengthen technological development and R&D”.
Inspiring Hungary conference aimed at showing Hungarian economy’s transformation towards an economy focusing on the increase of productivity, the implementation of the latest technologies and on high local added value.
“Thanks to the quality of experts and speakers at Inspiring Hungary conference, I’m proud to have contributed to highlight the attractiveness and the recent successes of the country. From now on, Hungarian economy is enhancing its technology level to face the various challenges of the coming years”, declared Robert ESIK, HIPA’s CEO.
Hungarian Investment Promotion Agency (HIPA) is the national investment promotion organisation of Hungary governed by the Ministry of Foreign Affairs and Trade. It contributes to the economic development of the country by promoting Hungary as an ideal location for investments and by providing management consultancy services to investors and prospective investors in the fields of location selection and supplier development in a one-stop-shop service model on a free of charge basis. HIPA is also responsible for investment incentives operating as the managing body of the VIP cash subsidy system based on individual government decisions. In the framework of its policy advisory activities HIPA mediates between business and government and collects company feedback in order to prepare policy proposals to further improve the business environment.