Hungary has now become an important regional innovation center in addition to being a continental manufacturing hub, which reflects the government’s goal of changing the economy’s dimension, said Péter Szijjártó, Minister of Foreign Affairs and Trade, on Thursday in Budapest.
The minister first spoke at a hearing of the National Assembly’s Economic Committee about the crises of the past decade and today, to which, in his words, the European Union has consistently responded poorly, as tariffs, sanctions, rising energy prices, and isolation have all led to a significant weakening of the community’s position today.
The European Union is falling further and further behind both the United States and China, the two leading players in the global economy. This is a situation that presents us with a challenge, and we interpret this challenge as meaning that, even in a downward-trending European economic environment, we must ensure that the Hungarian economy remains competitive and even improves,”
he stated.
Prime Minister Viktor Orbán (L) and the 45th President of the US, Donald Trump in Florida in July, 2024. Photo: Miniszterelnöki Sajtóiroda/Fischer Zoltán
He then welcomed the fact that enormous manufacturing capacities have been established in Hungary over the past ten years, so now is the time for a change in the economy’s dimension, for added value, and for an increase in the ratio of research and development.
From this point of view, 2025 has brought significant successes. In addition to being a continental manufacturing center, Hungary has also become a regional innovation center,”
he said.
He believes that one of the important foundations for strengthening competitiveness is that Hungary continues to be an important meeting point for Eastern and Western investments, offering the most unhindered environment for cooperation in Europe.
“This has nothing to do with politics. It has more to do with global economic processes,” he emphasized, pointing to the division of labor among global economic actors. “And the countries that will be at the forefront are those that do not hinder cooperation between economic actors on political grounds, and those countries that do not discriminate between investors on the basis of nationality,” he continued.
Péter Szijjártó announced that
since the beginning of 2024, the government has provided support for 139 major investments worth HUF 755 billion (EUR 1.9 billion), which have resulted in total investments of HUF 5,455 billion (EUR 13.6 billion) and created 31,000 jobs.
“Chinese companies have brought the largest share of investments to Hungary. During this period, South Korean companies ranked second, followed by Hungarian companies,” he noted.
Prime Minister Viktor Orbán (L) and Chinese President Xi Jinping shake hands at a reception in the courtyard of the Buda Castle on May 9, 2024. Behind them are President Tamás Sulyok and his wife Zsuzsanna Nagy. Photo: MTI/Miniszterelnöki Sajtóiroda/Benko Vivien Cher
He added that “of the 139 projects, 37 were carried out by Hungarian companies. In terms of project numbers, Hungarian firms lead the way, with China in second place and Germany close behind in third. As for job creation, more than half of the new jobs — 56 percent — are linked to Chinese investors.”
He also emphasized that
with the help of the Hungarian investment incentive system, investments worth EUR 10.3 billion were brought to Hungary last year, compared to EUR 2.4 billion in Poland, EUR 2.38 billion in the Czech Republic, and EUR 1.2 billion in Slovakia.
The minister said that now that the gap in development and competitiveness between the eastern and western parts of the country has been eliminated, it is a very important economic policy objective to try to blur the dividing line between northern and southern Hungary, and therefore they will pay particular attention to the south-eastern and south-western regions in the future.
Via MTI; Featured photo: Pexels
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