The proportion of foreigners in the Hungarian economy has decreased

Viktor Orbán, the Hungarian Prime Minister, launched the opening of the financial year this weekend. The goal is the continued growth of the Hungarian economy. However, according to Orbán, Hungary must avoid five types of trap situations.

Five Trap Situations

When examining an economy, five different pitfall situations can be identified. Hungary must avoid them if it wants to achieve a prosperous economy. These five trap situations are:

  • a high foreign ownership trap
  • the trap of the domination of large exporting companies
  • negative balance trap
  • the trap of duality
  • a trap of rural backwardness.

Prime Minister Viktor Orbán pointed to the danger of high foreign ownership.

The high share of foreign ownership in Hungary was significant for the first time in the period before 2010. In the 2010s, the share of foreigners in the Hungarian economy decreased slightly from 51.6% to 49.2% . written vg.hu.

There are currently 14,000 foreign companies operating in Hungary.

Foreign ownership in Hungary

The role of foreigners in the national economy has diminished. You can also see this in terms of sales and investments. However, the share of foreign exports is increasing.

The share of Hungarian companies in the media, energy and banking sectors has also increased.

While in 2010, for example, the role of Hungarian ownership in energy was less than 29%, in 2020 it was already 56%. A similar significant growth can be observed in the banking sector. It was 40% in 2010, while in 2020, 58% of the banking sector was nationally owned. Hungarian ownership has increased in several key sectors.

The proportion of Hungarian companies is also between 50 and 70% in trade, food production and tourism.

At the end of 2020, the Hungarian ownership share in the human health and social care, construction and transport sector exceeded 70%.

All in all, it can be said that great progress can be observed in the Hungarian appropriation, writes index.hu. Progress is clear in key areas, but there is still room for growth in others.

Source: vg.hu, index.hu

Laura T. Thrasher