More and more investors are freezing their investments in Hungary or cancelling them. In the third quarter of last year, not including investments previously accounted for; there was a 5.4 percent decrease in investment in the national economy over the same period last year. This is despite a 27 percent growth in the manufacturing sector as a result of major investments by several large automotive firms, while at the same time, investments in shipping and warehousing dropped 12.1 percent.
Real estate investment fell 26.6 percent in the last year. We have seen the effects of the crisis tax as well, such as investment in the banking industry achieving just 74 percent of what it was last year, commercial achieving just 90 percent, info-communications falling 10 percent, and electricity, gas, and steam dropping 30 percent. The numbers cannot be ignored because investment is one of the strongest factors of growth - trends in which help project the expected change in GDP.
Recent hectic changes in economic regulations, the special taxes imposed on various sectors, other unorthodox economic policies, the oft-mentioned anti-multinational public sentiment, and uncertain financial circumstances have further weakened the operating capital of the local executives of multinational companies, for new developments in Hungary, due to corporate positioning and the arguments of public shareholders – said Péter Dávid, the Chief Executive Officer of the American Chamber of Commerce (AmCham). He added that AmCham’s member companies are confident that the Government has prepared the country to successfully get back on track to growth. To do this, however, it is necessary to restore the confidence of foreign investors for whom stability and predictability is a prerequisite. Without this economic growth cannot be initiated – he says.
We hope that Hungary listens and in terms of options, makes use of its associations and friends – the US government and the leaders of the EU – their proposals, and emboldens Hungary to achieve desired economic position in Central and Eastern Europe – said the Executive Director. What would inspire multinational companies in terms of promising signals would be if Hungary demonstrated commitment to Euro-Atlantic values and market economics through tangible actions. AmCham supports this by all possible means, he added.
AmCham sees plenty of untapped opportunities for education and training in research and innovation. And people are watching the Government to see if it adopts the bureaucracy reduction package and puts it into practice.
