The latest, 25th business confidence survey conducted by the German-Hungarian Chamber of Industry and Commerce (DUIHK) reflects that 2018 was a highly successful year for the Hungarian economy, Minister of Finance Mihály Varga said, evaluating the study’s results.

The responses of company managers also confirm that – thanks to Government measures – the situation was perceived to have significantly improved in the field of taxation, labour market regulations and the efficiency of the bureaucracy.

German enterprises operating in Hungary have been key fellow companions on Hungary’s journey in past decades, as they have contributed to economic progress through sharing experiences and stating demands, the Minister said. Germany is the largest investor in terms of capital and employment, as the more than two-and-a-half thousand enterprises have some 200 thousand people in their payroll.

The survey shows that enterprises see the prudent and disciplined fiscal policy as a pro-growth factor. Due to this policy, the deficit of the government budget has been below 3 percent of GDP for the seventh consecutive year and the government debt-to-GDP ratio has been declining from year to year.  The confidence in the country’s economic policy has hit a record high in 2019 again, as eight out of ten indicators have improved. The extent of improvement was the most spectacular regarding taxation: while in 2009, during the financial crisis, 80 percent of enterprises were dissatisfied with the tax regime and tax administration, by 2019 positive responses were larger in both categories. The Hungarian economy provides a proper environment for German enterprises, and this is being reflected in their dedication to Hungary: 82 percent of respondents would decide again to implement the planned project in Hungary.

The responses of company managers regarding their perceptions on the cooling of the global economy also confirm that the Programme for a More Competitive Hungary, prepared by the National Competitiveness Council and adopted by the Hungarian Government, has rightly identified the fields that need adjustment, Mihály Varga said, pointing out areas such as the improvement of business environment, the importance of R&D development and the improvement of labour skills.

(Ministry of Finance)