The Purchasing Manager Index published by the Hungarian Association of Logistics, Purchasing and Inventory Management (HALPIM) rose to 51.7pct from 50.2pct in September. The index has shown increasing economic activity in the manufacturing sector over the last ten months, with a short interruption during May and June (when it dropped slightly below 50pct). Behind the positive overall data stands a continuous improvement of nearly all the sub-indexes registered over the past ten months. With its regained momentum in manufacturing, Hungary follows the wider European trend of industrial buoyancy now marked by a 15th month of rising industrial output.
Hungarian Prime Minister Viktor Orban made a three-day official trip to China where he met business leaders, and current and prospective investors. PM Orban negotiated with senior managers of the telecommunications company ZTE, as well as with the leaders of Huawei, which is pondering the option of launching a development project to make Hungary a regional manufacturing hub. The PM then met with Hainan Group leader Chen Feng to negotiate the possibility of establishing an airline company in Hungary and on the reorganisation of Malev, the Hungarian national carrier. They agreed on the establishment of a joint committee to foster long-term economic cooperation with Mr Feng. Mr Orban also had talks with Ding Jiansheng, President of the Wanhua group, which is Hungary's largest Chinese investor and holds a minority stake in BorsodChem chemicals. Finally, PM Orban held negotiations on the presence of China's Bank of Communications in Hungary. The Hungarian delegation concluded its official visit by participating in a high-level forum at the Shanghai Expo. After the event, PM Orban and his Chinese counterpart Wen Jiabao held a 30-minute exchange of views, and agreed on strengthening the political and economic relations between Hungary and China.
Hungary's ESA95 budget deficit will correspond to 2.94pct of GDP next year, Economy Minister Gyorgy Matolcsy told a news conference on October 30. The 2011 draft budget approved by the government on October 27 targets a cash-flow deficit of 2.8pct of GDP as defined in Hungary's agreement with the IMF and the European Union, he said. The cash-flow deficit is expected to amount to HUF 834 billion (EUR 2.28 billion) next year. Keeping the budget deficit below 3pct, Hungary will for the first time fulfil the target specified in the EU stability and growth pact.
Hungarian Seawing, a producer of electronic control systems, has inaugurated a brand new plant in Szekesfehervar (NW Hungary). The HUF 366 million investment (including HUF 100 million in EU funding) will significantly expand the R&D capacities of the company, which has been able to obtain new test labs for technology development. The staff number will also increase: from 40 to a total of 70. Seawing is a Hungarian-owned company founded in 1989. By supplying 400 partners in Hungary and neighboring countries (Romania, Austria, the Czech Republic, Slovakia and Croatia) it realizes an annual revenue of HUF 1 billion, and profits of HUF 150 million.
The Hungarian city of Kecskemet is building a HUF 1.9 billion hotel expected to cater for business travelers visiting the soon-to-be completed local Daimler plant.The investment is supported with HUF 437 million of European Union and state development funding, said mayor Gabor Zombor. Kecskemet-based property developer IGN and bank loans will cover the remaining costs, he added. The local council owns an indirect 25pct stake in the project company set up to build the hotel. IGN holds 75pct. Construction is to start in 2011. When completed, the hotel will be operated by the Hilton group under the name Hilton Hampton Inn. Occupancy at the hotel is expected to be over 60pct, well over the nationwide average.
Metalworking company Bock Hungaria on October 27 inaugurated a HUF 206 million plant in Noszlop (NW Hungary). European Union and state development funding covered HUF 100 million of the cost of the investment, said managing director Csaba Stallmeiszter. The plant is expected to boost revenue by 8pct next year. Headcount rose from 175 to 230 as a result of the investment. Bock Hungarian had retained earnings of HUF 93 million on revenue of HUF 1.8 billion in 2009.
A new MICE campaign will be launched next year along with a new promotional film about business travel options to Hungary, said Ms Anikó Ferenczy, director of the Hungarian Convention Bureau (HCB). According to the plans, Hungarian conference hotels, venues, PMCs and PCOs would be categorized on the HCB website. Conference and sport ambassador programs would be supported, and customisable materials would be made available for submitting tenders. Sales efforts to boost the traffic of provincial conference hotels has also begun, and future large-scale venues (capable of hosting more than 1,000 participants) will be collated and displayed in a calendar or on the HCB's website.
During Hungary's presidency of the EU, a total of 250 events will be held, including the Oriental Partnership meeting, 18 ministerial informal meetings, 10 ministerial conferences, 60-70 high-ranking events and meetings of experts. A specialized department of the Ministry of Foreign Affairs is coordinating and organizing. The government has laid aside the Royal Palace of Gödöllő as the venue for ministerial meetings, although two meetings will be held in Debrecen and in Balatonfüred. Budapest will also host hundreds of gala receptions and dinners in various establishments and historical buildings. The Hungarian National Tourist Office will provide on-site tourist information at all events which attract more than 50 participants; it will also provide information for the 40,000 politicians and decision-makers arriving during the term of the Presidency.
The 8th Business Travel Show, the annual meeting place for corporate buyers and travel suppliers, attracted more than 100 exhibitors and thousands of visitors on 20-21 October. The Hungarian National Tourist Office invited international hosted buyers to give their insight into the country's MICE offer. German, Austrian, French, British, Russian, Polish and Slovak experts were mainly interested in new conference hotels and venues, but spas and special meeting venues also featured highly on the agenda.
Bloomberg Gedeon Richter Buys Rights to Grunenthal Contraceptives for USD 331 Million "Gedeon Richter Nyrt., Hungary's largest drugmaker, purchased Grunenthal GmbH's contraceptive portfolio for 236.5 million euros (USD 331 million)." Click here to read Reuters Hungary's debt could start falling in 2010 -paper"Hungary's public debt can begin to decline in 2010 if the forint remains near 270 per euro, and the current path would bring debt to the EU's ceiling of 60 percent of GDP by 2015, the head of the country's debt agency's said." Click here to read
Changes to Personal Income Tax (Part One)Read further information here
Words without Borders: Writing form Hungary"Words without Borders is a publicly-funded cultural and educational movement with the mission of publishing literature translated from various languages to English. In its online issue it has also presented some remarkable pieces of contemporary Hungarian literature." Click here to read