At its meeting on September 27, 2010, the Monetary Council reviewed economic and financial developments and voted to leave the central bank base rate unchanged at 5.25 pct.In the Council's judgment, the Hungarian economy begun to emerge from recession in 2010; however, output is likely to only slowly return to its potential level. Inflation is expected to ease back towards the Bank's 3 pct inflation target on the horizon relevant for monetary policy, due to the persistent weakness of domestic demand.
Leonar3Do, a new 3D desktop device, is now being distributed by retailers. Using 3D glasses and a pointing device, the new product offers the possibility for the 3D animation of objects on an ordinary computer screen. The main target audiences are architects and designers, but the product may also be used in the film industry.Leonar3Do was invented by young Hungarian prodigy Daniel Ratai, and has received several awards (including the 2008 Tech Museum of Innovation Award). The invention has been developed into a marketable product by 3D for All, a Hungarian company. This has been supported by government funding of HUF 300 million and other grants.
The Hungarian National Asset Management Company (MNV) raised capital at national carrier Malev by HUF 14.7 billion at an extraordinary shareholders meeting on 24 September. MNV converted HUF 9.4 billion of Malev's debt, including principle and interest, and injected a HUF 5.3 billion cash sum into the company. At the same time, MNV lent Malev HUF 5.7 billion to ensure the liquidity the airline needs to operate.
John S. Herold Inc. and Harrison Lovegrove & Company has put together, for the 43rd time, a list of the top oil companies' performances in exploration-production (upstream). MOL reached the top of the European list in 2003 for the first time. Since then, it has led the list on five occasions. In the study, 224 oil-and gas industry corporations were analyzed, and MOL reached first place in Europe in terms of efficiency (regarding one barrel's equivalent value) and 17th place worldwide, which means a significant improvement on last year's 38th position.
SCD Group could start its planned flagship investments at Lake Balaton next year, depending on the financing environment, Tibor Polgar, CEO of SCD Group unit Balatontourist, said at a forum organized by the state tourism agency Magyar Turizmus on 24 September. The flagship projects include a 130-room viticulture-themed hotel in Badacsony, a 150-room hotel and water park in Balatonfured, a 150- to 180-room hotel and extreme sports park in Alsoors, a 150- to 180-room hotel and amusement park in Zamardi, and a 150-room hotel and family recreational park in Balatonszemes, Mr Polgar said.
GKI's business climate index, a compound of indicators measuring managers' expectations in Hungary, rose to 33 points in the second quarter of 2010. Since the first quarter of 2009, when the index plunged to an all-time low, Hungary's business climate has increased, with a minor interruption in the first quarter of 2010. The upward trend is fuelled by an improving business outlook: there are fewer managers who feel uncertainty about fiscal policy or business conditions. However, after a constant decline since 2009, interest spreads on 10-year Hungarian government bonds stagnated in September.
A new industrial park covering 165 hectares will be created near Pecs (SW Hungary). The investment has been offered through a joint venture between Pecs Holding Zrt and the Austrian IPP Beteiligungs GmbH, the latter taking on the building of public utilities and the selling of the lots. The industrial park, which is located near the M6 highway, is undergoing regular expansion: in the latest phase, a further 18 hectares has been added to the territory, along with a new 'venture village' which is to host smaller companies. This latest investment amounts to HUF 600 million.
German car-maker Audi will invest EUR 900 million in expanding capacity at its base in the Hungarian city of Gyor by 2013, Audi Chairman of the Board of Management Rupert Stadler and Hungarian Prime Minister Viktor Orban said on 23 September. The investment will create 1,800 jobs, and it could add 2 pct to Hungary's GDP when completed, Mr Orban said. Audi's base in Gyor will be the source of 15,000 jobs, both at the plant and at suppliers, when the capacity expansion is completed, Mr Stadler said. The expansion will raise the annual number of cars produced at the Gyor base to 125,000.
The volume of retail sales has increased for the first time since March 2007, based on calendar-adjusted data by 1.7pct year-on-year. However, the grand total of the first seven months of 2010 has seen a further decrease of 3.8pc. Compared to the previous month, the volume of retail sales has risen by 1.0pct according to seasonally and calendar-adjusted data. In July 2010, domestic retail turnover (including retail sale via mail order houses) was HUF 673 billion, out of which a turnover of HUF 4,071 billion was generated in the first seven months of 2010.
Synergon System Integrator Ltd. has concluded an agreement with Volksbank Hungary Private Ltd. about opening a credit line. The company will use the credit line to settle the liabilities of ongoing project-equipment procurements. The agreement extends the credit line of Synergon System Integrator Ltd. by HUF 375 million, of which the bank overdraft is 200 million HUF.
The Wall Street Journal Audi, Opel to Expand in Hungary"Two large car makers announced expansion plans in Hungary within three days this week, pledging foreign direct investment totaling EUR 1.4 billion." Click here to read Bloomberg Hungary Debt Agency Sees Tighter Bond Spreads After Pledge to Cut Deficit"Hungarian bond spreads over German debt will probably narrow as the country reduces its budget deficit to less than the European Union's limit next year, said Gyula Pleschinger, the new head of the government debt agency." Click here to read Budapest Business Journal Hungary gov't to introduce flat-rate family tax on Jan 1"The Hungarian government will introduce a flat-rate income-tax and family-based taxation on January 1, Minister of National Economy György Matolcsy said over the weekend, denying press reports that the tax reforms promised by the government will be delayed." Click here to read
Central Europe: Enemies, Neighbors, Friends"This historical survey of Central Europe covers a region that encompasses contemporary Germany, Poland, the Czech Republic, Slovakia, Austria, Hungary, Slovenia, and Croatia. Author Lonnie R. Johnson illuminates the competing religious, cultural, economic, national, and ideological interests that have driven the history of Central Europe in the past millennium. Each chapter is thematically organized around issues or events that are key to developing an appreciation for the historical and political dynamics of the region, particularly in the nineteenth and twentieth centuries." Click here to read