The government has changed the GDP projection for 2010 from a 0.3 pct contraction to a 0.2 pct fall in the new update, Finance Minister Peter Oszkó said at a press conference on February 15.
In 2009, the volume of industrial production was 17.7 pct lower than a year ago. In December 2009, industrial gross output increased by 1 pct compared to December 2008, the index adjusted for working days declined by 1.4 pct. The volume of industrial production in December - according to seasonally and working-day adjusted indices - was below the level of the previous month by 5.8 pct.
A total of HUF 481 billion has been earmarked under the New Hungary Development Plan for healthcare developments over the 2007-2013-period. A new micro-regional healthcare center will be constructed in the micro-region of Barcs by investing over HUF 640 million.The development of healthcare centers undertaking micro-regional tasks has begun in several settlements over the past few months. The fundamental aim of these healthcare centers is to ensure access to suitable standard healthcare services for everyone, even in settlements where no such healthcare services were available earlier.
The Magyar Nemzeti Bank (the central bank of Hungary) published the results of its latest lending survey in January, suggesting that banks have had strong ability and adequate liquidity position to lend. However, their risk-taking inclination has been yet low, leading to reduced credit availability particularly to the corporate sector.In addition to supply-side factors, the weak demand for loans has been continuing to be an important factor in the decline of loan volume.
CIB Bank analysts say they expect industrial output to increase by around 5 pct in 2010 taking into consideration uncertainty factors such as the calamities of the German industry this year. The forecast was made following the publication of finalized Central Statistics Office (KSH) industrial-output figures for December, on Monday.Although the 1 pct industrial output growth figure is positive, the workday-adjusted figure still shows a weakening from twelve months earlier. Month-on-month, the deterioration is even bigger, 5.8 pct.The analysts mentioned that while industrial exports grew 5.4 pct, domestic demand remains frail. Industrial output plunged 17.7 pct in 2009 from 2008, a considerable drop, showing that Hungary has lost its competitive edge in the region, where other countries' industrial output started growing earlier.Industrial output growth has been primarily driven by fiscal incentives and restocking both in the region and globally. Exports last year fell 19 pct from 2008.
New orders received by Hungary's manufacturing sector in December rose 7.0 pct in volume terms from the same month of 2008, in the first yr/yr increase since July 2008, helped by base effects, the Central Statistics Office (KSH) said on Monday. The increase came from a low base, and mainly reflected fresh export orders but new domestic contracts were also up. In December 2008 new orders were down by more than third yr/yr, in the steepest of the drops ongoing for 17 months in a row.New export orders rose 7.8 pct on the year - their yr/yr decline, which started in August 2008, was the biggest, at 37.2 pct, in December 2008. Among the important export branches, new export orders of Hungary's vehicle manufacturing industry were up yr/yr now, for the third month after new contracts fell 40-50 pct yr/yr in Q4 2008. New export orders of computer, electronic and optical product producers were still 11.5 pct below year earlier levels in December after an almost 25 pct drop in December 2008. The gap narrowed from November.
Hungary's government has taken sufficient measures to stabilize the economy, but a strict fiscal policy as well as maintaining risk reserves is still necessary, and further measures must be taken in 2011 to bring the general government deficit under 3 pct of GDP. It was the conclusion of IMF Delegation Head James Morsink on Monday, after a review of Hungary's progress meeting the conditions of a EUR 20 billion financial support package from the IMF, EU and World Bank granted in November 2008, after the country's bond market ceased to function properly.Further measures are required to reduce Hungary's state debt from over 80 pct of GDP to 65 pct in the next five years, Mr Morsink said.
In December, the trade balance showed a surplus of HUF 106 billion (EUR 375 million), the balance improved by HUF 132 billion (EUR 457 million) compared to the same month of 2008. The share of the European Union Member States was 77 pct in exports and 65 pct in imports.In December 2009, according to first estimates, exports amounted to HUF 1,324 billion (EUR 4,881 million), while the value of imports reached HUF 1,217 billion (EUR 4,506 million). The Euro value of exports increased by 9 pct and that of imports fell by 1 pct over the equivalent month of the preceding year.
Australian property developer Goodman Group told MTI it has started the second, HUF 2.5 billion phase of construction at the Üllő Airport Logistics Center on the outskirts of Budapest.Goodman Group is building a 16,000-square-metre warehouse for EUR 3.5 per month per sq meters and 1,000 square meters of office space for a rental price of EUR 9-10 for Swedish cosmetics company Oriflame. The phase will be completed in the autumn. The logistics center will serve as a Central-European distribution base supplying seven countries in the region. Oriflame has been negotiating with Goodman for a year, the deal was signed two weeks ago. In the first phase of the project, Goodman Group built 27,000 square meters of space for household products retailer Rossmann. The phase finished in early 2009. The logistics center will have 155,000 square meters of space when completed. The investment costs HUF 2.5 billion.
ITD Hungary and the Hungarian Fur Association will present five Hungarian fur makers at this year's Fur and Leather Exhibition, from March 3 until March 6 . The Hungarian fur makers will be found in Fieramilano Rho, Pavilon 14. Stand H04-G03. The displayed products will include hamster, chinchilla and Panofix skin, leather and sheepskin clothing, such as fur coats, shawls and pelerines, as well as accessories. One unique product will be a seal fur-decorated leather laptop case.
Amendments to Labour Code Click here to readEU & State Aid - Non-refundable Subsidies in order to Secure JobsClick here to read
Telegraph Hungary Likely to Swing to Right in April's General Election"Voters in Hungary look set to punish the current Socialist government in general elections in April with a sharp swing to the right, all the opinion polls suggest." Click here to read The Budapest Times On watch"The Organization for Economic Cooperation and Development warned Hungary last Thursday against loosening its fiscal policy after the April general elections. OECD researcher Pierre Beynet praised Hungary's recent fiscal consolidation while in Budapest to present the latest economic report on Hungary by the influential Paris-based group of 30 developed nations." Click here to read The Sofia echo European Commission, IMF Findings on Hungary's Economic Reform"Hungary has maintained its course in implementing its economic reform programme, the European Commission (EC) said on February 15 2010, after the fourth review done under the EU's balance of payment assistance scheme. The review was done in close co-operation with the International Monetary Fund (IMF), the EC said." Click here to read
"Made in Hungary or made by Hungarians" From the founding fathers of Hollywood to the nuclear physicists developing the atomic and hydrogen bombs in Los Alamos, from Joseph Pulitzer to Mr. Rubik (of the Cube) there were and are several Hungarians who made the world go round a little faster. Even their fellow Hungarians are not always aware of that but others would surely be amazed to learn that Intel or Microsoft have key Hungarian connections as well. Attila the Hun, Harry Houdini the escape artist, the Mighty Magyars of old football fame, aren't they exceptional? This book is about them and the creativity of Hungarians. Click here for more information
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