Budapest in Competition for the European Institute of Innovation and Technology

May 20th 2008

Hungary joined the competition for becoming the host of the European Institute of Innovation and Technology, a center to "accelerate economical growth" in the EU by integrating research, innovation and education. Hungary competes with other member states nominating five towns: Jena (Germany), Vienna-Bratislava (Austria, Slovakia), Sant Cugat del Valles (Spain) and Wroclav (Poland). The Ministry for National Development and Economy hopes to persuade decision makers of the high innovation capacity of Hungary. Gordon Bajnai Minister of Economy is visiting Brussels during the campaign to call attention to the supporting tax system and the track record of the successfully operating knowledge centers in the capital. The final decision will be made May 30th 2008.

Israeli-Hungarian Bilateral Trade

May 19th 2008

ITD Hungary organized a conference in cooperation with the Israeli Export Institute on May 19th 2008. The talks focused on bilateral economic relationships, particularly in the agricultural and food industry sectors. Israel established official relationship with Hungary after the collapse of Soviet regime in 1989. Since then the trade activity has grown spectacularly, exceeding USD 500 million in 2006. Israel also cooperates with Hungary in the field of research and development.

Britain's Sauflon Pharmaceutical Chose Hungary

May 19th 2008

Sauflon, a major UK pharmaceutical company, decided to invest HUF 3 billion (EUR 12 million) in Hungary to build its contact lens factory. The enterprise is supported by the special non-refundable grant of the Hungarian government. Sauflon already employs 140 Hungarian nationals and intends to hire 200 more. According to the EU regulations Sauflon is waiting for the Union's approval for the investment subsidy to proceed with the enterprise in Gyal, a minor town close to Budapest.

Hungarian Currency Reaches Record Strength

May 19th 2008

Hungary's forint reached a 10-month record strength in mid-May. Euro valued HUF 246 and USD equaled HUF 157.50-158 last Friday due to a 1 percent rise of the local currency.

Sony Ericsson Appoints Hungarian Top Manager

May 16th 2008

Tibor Wagner, former CEO of Sony Ericsson's CEE operations, was chosen to become the global account director of the company. Sony Ericsson promotes talents only with dazzling professional track record to leading positions. Mr. Tibor Wagner will be responsible for business relations with Hutchinson Whampoa Ltd (HWL) located in Hong Kong, a partner with primary importance to Ericsson. HWL is a pioneer in mobile communication network construction and management areas, and owns mobile technology brand "3".

Hungarian Bank's Surprise Income

May 16th 2008

OTP, Hungary's biggest bank and leading credit institute in the CEE region, reported 2 percent higher revenue growth after taxation in Q1 2008 than expert analysts expected. OTP's HUF 55.3 billion income equals a 9.5 percent higher profit than Q1 2007 and justifies the expansions towards Croatia, Ukraine and Russia. The bank also owns subsidiaries in Romania and Serbia where similar justification for expansion is still unclear. The report stresses that OTP does not have sub-prime interests therefore the previously planned growth of the income is possible this year.

Oil Recovered by MOL in Russia

May 16th 2008

Hungarian Oil and Gas Industrial PLC (MOL Nyrt.) successfully finished its first West Siberian test drill harvesting 50 cubic meters of oil (approximately 1765 cubic feet). It is too early to estimate the total volume of recoverable energy sources under the surface of the 3200 square meter (34443 square feet) test field purchased by MOL last year. Researchers use advanced technology for their tests like 3D seismic measurements and plan to start production by the end of 2008. One of the biggest challenges for MOL is the lack of infrastructure and electricity essential for constructing and operating not only the drilling mechanisms but also the transportation system.

Airport City Opens Near to Budapest

May 15th 2008

Improvement of the Hungarian Airport at Ferihegy required real estate and logistic improvement of the area. Ablon Group Limited, a major real estate development company in the CEE region, started its Airport City project in 2007 to offer prime quality services and human resources for transportation and cargo companies. Ablon opened the first building of its compound, which offers 8,300 square meters (89,338 square feet) for storage and 2,000 square meters (21,527 square feet) for offices.

Optimism and Growth in Hungarian Economy

May 13th 2008

Growth of the Hungarian economy reached 1.6 percent in Q1 2008. Although analysts are generally optimistic in their prognoses about this year's possible improving performance they differ on the level of economic expansion. Estimations vary between 2.5-4 percent but experts agree that three major sectors could support the success. Rise of the industrial revenue performed really well with its 6.9 percent compared to Q1 2007. Agriculture and public services also weigh heavily in the prospective positive results of the year.

Spectacular Rise in Hungarian Export

May 10th 2008

Hungary's export income rose by EUR 250 million in Q1 2008 as opposed to the EUR 150 million deficit in Q1 2007. The EUR 400 million growth in a year undoubtedly reflects Hungary's efforts to strengthen its economy and to meet the requirements of EU. Q1 resulted in a rise of the export income by 16 percent, while import reached only 13 percent. Hungarian Institute of Statistics reported EUR 170 million worth of income in March.