In January 2010, the producer price level of agricultural products rose by 3.6pct on the corresponding period of the previous year. More specifically, the price level of crops and horticultural products was up by 7.5pct, while that of livestock and animal products decreased by 2.3pct.
Magyar Telekom plans to expand its client service portfolio by taking the first steps to enter the Hungarian retail electricity and gas market. In line with Magyar Telekom's strategy of capturing incremental revenue sources in business areas where the company would be able to build on its existing capabilities, it has decided to enter the retail energy market via the resale of natural gas and electricity. It would leverage off its extensive sales networks which it already has in place.It is anticipated that participation in the retail electricity and gas markets will enable Magyar Telekom to retain its existing customers, and win new telecommunication clients with attractive energy offers. The company expects that such electricity and gas offers will also help support upsell and upgrade offers in the telecommunication business.
In January, the trade balance showed a surplus of HUF 76 billion (EUR 290 million): an improvement of HUF 124 billion (EUR 490 million) on January 2009.In January 2010, according to first estimates, exports amounted to HUF 1,292 billion (EUR 4,783 million), while the value of imports reached HUF 1,216 billion (EUR 4,493 million). The euro value of exports increased by 15pct; imports rose 3pct on the equivalent month of 2009. The share of the European Union Member States was 81pct in exports and 68pct in imports.
In February 2010, consumer prices increased 0.3pct on the previous month and rose by 5.7pct on February 2009.In the first two months of 2010, the average increase of prices was 6.1pct compared to the corresponding period of 2009.
Hungary's Gross Domestic Product decreased by 4.0pct in the fourth quarter of 2009 and by 4.1pct when adjusted for calendar effects, compared to the corresponding period of the previous year. According to seasonally adjusted data, the economic performance declined by 0.4pct on the previous quarter.In 2009, performance of the Hungarian economy decreased by 6.3pct. In 2009, the value of GDP at current prices was 26.095 billion HUF; and GDP per capita was HUF 2,604,000.
The Zomba micro-regional education network will be developed within the framework of the New Hungary Development Plan National School Renewal Program by investing funding of approximately HUF 730 million.The National School Renewal Program is the most significant kindergarten and school renewal program of the past 50 years. Within its framework, it will be possible to upgrade and renew numerous kindergartens and schools through to 2011 with the help of EU and national funding, amounting to a total of HUF 105 billion.
The government and the prime minister have both passed a resolution on the measures and tasks necessary to implement of phase one of the European Union's Extreme Light Infrastructure (ELI), a HUF 100 billion (EUR 376.25m) 'super laser' project to be hosted jointly by Hungary, Romania and the Czech Republic. Both resolutions were published in the latest issue of the Magyar Kozlony official gazette.The first resolution assigns the Minister of National Development and the Economy with submitting a proposal to the government by August 15 to declare ELI a priority project. Hungary, the Czech Republic and Romania won a joint bid in autumn 2009 for the ELI project. The total cost of the project will be EUR 500 million, 40 pct of which will be spent on urban developments in Szeged.
The Hungarian Ministry for Transport suggested that MAV Zrt, the Hungarian State Railway, should have its 50 Intercity carriages renovated by Bombardier, the Canadian-German vehicle manufacturer. The Ministry says that MÁV will benefit from the HUF 10 billion deal, helping the Dunakeszi unit of Bombardier to survive the crisis. If MÁV decided on purchases instead of renovations, it should buy 12 carriages with 250-300 seats in order to replace its 50 trains, which would cost the company HUF 25 billion, instead of HUF 10 billion in renovation, says the Ministry. MÁV is expected to push down prices from HUF 248.7 million per carriage to 180-200 million in bilateral negotiations. Bombardier signed a contract with MÁV Zrt in the summer of 2007 on the 50 carriages for HUF 2,487 billion. Ten Intercity trains have already been rebuilt.
Huawei, the Chinese network and telecommunications equipment giant, is to open an assembly plant and logistics center in Hungary when the one-year-long test period expires in the summer of 2010. The company has been a supplier for Vodafone, and the two are now launching a new mobile Internet-sharing device onto the market. Huawei has been testing its manufacturing plants in Pécs and Komárom with 280 employees, and if the results are fruitful, the sites will become the European logistics and assembly centers for one of the world's top three telecom equipment suppliers. The plants are expected to generate an annual USD 1.5 billion of product and services with a staff of about 700 from 2011 onwards, Huawei Magyarország sales director Zoltán Takács said at a press conference."Mobile internet penetration is growing at a speed of about 7pct per year, says," Xu Qin Song, vice president for Huawei Europe.
After years of expansion, the Hungarian advertising market plunged by more than 20 pct in 2009, according to data collected by market researcher MediaLab. MediaLab estimates that total ad spending for the country was HUF 168 billion last year, including an averaged 15 pct agency commission.Print media, radio and ATL advertising suffered the most considerable decline in profits. Online advertising shrank by a single digit, but even with that fall, Internet marketing gained a 2pct larger slice of the overall advertising cake, making it the third-largest advertising channel after television and print media.This year, MediaLab expects the market to shrink further, research director Tamás Jobbágy said.
The cornerstone of a HUF 3.6 billion spa development in Mako (SouthEast Hungary) was laid on Friday. The project is half-covered by EU funding in the sum of more than HUF 1.5bn. The rest is being financed by a municipal bond issue. The facility is expected to be inaugurated by August 2011. More than 300,000 visitors came to the spa in Mako last year, and about 80pct of visitors were from neighboring countries. "In Makó there is thermal mud, a unique natural asset, only to be found in five places in the country," says Péter Buzás, local mayor. The building was designed by Imre Makovecz, a key figure in organic architecture, who has designed several buildings in Makó, such as the 'Onion House', the library and the local high school.
PriceWaterhouseCoopers has published its alerts on tax and financing related regulation changes in Hungary: A summary of the most recent changes affecting corporate income taxPlease, follow the link to find out more!
Realdeal Hungary receives the fifth-highest amount of EU support among member states"Hungary received a total of EUR 920.44m from the EU's Cohesion Fund, the European Regional Development Fund and the European Social Fund between 2007 and 2009, the business daily Vilaggazdasag reported on Friday, citing National Development Agency Deputy Director of Integration Laszlo Simon." Click here to read Forexyard Key risks to look out for during the Hungary elections - FACTBOX"Fidesz will have to kick start the economy after its deepest recession in nearly two decades, while also keeping the budget deficit on a sustainable path at a time when Hungary is still under the scrutiny of the International Monetary Fund (IMF)." Click here to read WSJ Political Party Rallies and Hussars to Dominate Hungary's National Holiday Monday" March 15, an important national holiday in Hungary, commemorates the 1848 Hungarian Revolution and Independence War eventually lost against Austria, or rather the Hapsburg House that ruled the Austro-Hungarian Empire at the time." Click here to read
Enterprise Exit Processes in Transition Economies "This book discusses exit processes (industrial downsizing, bankruptcies, reorganization and liquidations) in three leading transition economies of Central Europe: the Czech Republic, Hungary and Poland. The reason for the economic transition was that the socialist economies were almost bankrupt by 1989 and in desperate need of restructuring. This book analyzes the micro dimensions of this process, where industrial firms cease to exist, releasing assets and resources that may be used more efficiently elsewhere." - Slavonic and East European Review Click here to read