The state of Hungary has reached an accord on purchasing MKB from Bayerisiche Landesbank. The current owner has agreed to sell 99 percent of MKB shares to the state of Hungary and increase capital by EUR 270 million prior to the transfer.
Hungary’s retail sales volume has been on the rise for the 11th consecutive month and the increase of almost 5 percent registered in May is the third best growth figure within the European Union. The rebound in household consumption has been the result, among others, of the cuts in utility charges, family tax allowances, record-high employment growth, the increase of wages in real terms and improving consumer confidence.
“No road is long with good company,” Minister for National Economy quoted the Turkish proverb at a Hungarian-Turkish Business Forum organized to commemorate the month of Ramadan. At the event, the Minister presented awards honouring the most successful members and partners in 2013 of Aktiv, an association of Hungarian and Turkish businesspeople.
According to the flash report of the Hungarian Central Statistical Office (KSH) published earlier this morning, wages in real terms continued to increase. In January-May 2014, the average gross wage of full-time employees was up by 2.9 percent year-on-year.
In order to ensure the 2.9 percent budget deficit target for the year, the Government has decided to cut state spending by some HUF 110bn. The central government lowers its own costs to ensure that the deficit is kept at the desired level. The proposed measures will not affect families, private households, enterprises or local governments.
In May 2014, industrial output grew by some 10 percent, while in the initial five months of the year the sector expanded by 9 percent. Output growth, which has been steady for the ninth consecutive month, was also underpinned by the double-digit increase in manufacturing sector output, as ten out of the altogether thirteen sub sectors registered expansion. The firm performance of the Hungarian industrial sector over the past period also proves the success of the active industrial policy pursued in the past years, therefore the Government aims to continue with the re-industrialization of the country.
Similarly to the Hungarian Government, Eagle Ottawa Hungary Ltd believes in the power of achievement and work, and as a result of this approach the company has doubled output and the number of its employees over the past two years, Minister of State for Parliamentary Affairs András Tállai said at the inauguration ceremony of Eagle Ottawa’s new development project in Szolnok.
The share of SMEs in Hungarian export sales has increased by three percent over the course of just three years, primarily thanks to medium-sized companies. This was just one of the findings of the report on the state of small and medium-sized enterprises for the year 2011-2012, which the cabinet approved at its meeting yesterday.
The deficit of the budget’s central subsystem for months 1-6 2013 was HUF 813.7bn forints (EUR 2.62bn), which is equivalent to 82.6% of the planned annual ceiling.