Open economy
Hungary is an open economy and particular emphasis is placed on encouraging foreign investment. Partnership with potential investors is considered a national priority; special attention is paid to the needs of companies already settled in Hungary and to the further improvement of the business climate. Inward FDI stock amounted to 78% of GDP (at the end of 2013), the highest ratio in the region.
Government’s measures
In order to improve the business climate, the Hungarian government:
- Reduced the CORPORATE TAX RATE to the lowest level in the CEE region (10/19%)
- Created a new, even more FLEXIBLE LABOUR CODE in favour of employers
- Restructured TERTIARY EDUCATION in accordance with labour market expectations
- Introduced a new act on VOCATIONAL TRAINING in favour of business needs
- Created FREE ENTERPRISE ZONES with special tax and contribution allowances
- Introduced the JOB PROTECTION ACTION PLAN to improve the situation of certain groups of employees by reducing employer costs
- Entered into STRATEGIC AGREEMENTS with numerous companies
Source: HIPA