EY survey: Hungary ranked 15th on the instructions of foreign investors
Based on the survey of the international consulting company, 64 percent of investors expect more and more investments to come to Europe in the next three years, and 53 percent of them will strengthen the continent, EY told MTI on Tuesday.
The regional world ranking is led by 60 regions of Western Europe, while North America is the most favorable from an investment point of view with 52 percent and Eastern and Central Europe with 42 percent, they wrote. According to the announcement, 5,877 investment projects were realized across Europe in 2021, a 5 percent increase compared to the previous year. Hungary received 7 projects, which is 58 perfects higher than the 2020 result and means 15th place on the European list.
Domestically, vehicle manufacturing, software and IT services, and electronics are the most popular investment areas, the majority of investors came from South Korea, Germany, the United States, and Austria. In Hungary, the amount of priority working capital investments in 201 reached 5.3 billion euros, that is, the Czech Republic closed with 985 billion euros, Slovakia with 0.5 billion euros, and Poland with 3.5 billion euros.
Hungary was the most successful of the V4 in terms of the investment volume, projects, and the number of new jobs in proportion to the population, they added.
EY believes that working capital investments favor the most favorable, affordable tax and regulatory environment, skilled labor, protection of intellectual property rights. According to the statement, the CEO of the National Investment Agency (HIPA) believes that domestic investments may continue to be dominated by Far Eastern capital, but the German-American relationship remains strong.
István Joó added that Hungary gives preference to knowledge- and technology-focused projects that can significantly contribute to economic growth. EY’s survey was conducted between February and April 2022 by interviewing 501 international investors. The European working capital projects announced in 2021 were also analyzed for the research.