HUNGARY: the Reliable Partner

No political riskNo strikes

No social conflicts

No institutional riskCompleted deregulation

EU compatible institutionsDeveloped banking system

No financial riskModerate income policy

Sound & transparent fiscal policyStable monetary policy

… 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 ..

On an investment and export driven growth path together with the EU since the 1990s

YES to Investments

Hungary: The Reliable PartnerFavourable Political and Economic Environment

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Favourable Political and Economic Environment

Ideal geographic location

Connecting the most developed and the fastest developing countries

Well-developed infrastructure

Favourablelegal environment

Qualified and innovative labour force

A BRIDGE binding West with East, North with South

in Europe

4 Pan-European Corridors

Gate to South East Europe

Direct access to the EU

Increasing competitiveness

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Region of the Future Award 2004/5 in Central Europe granted by fDi

Magazine (Financial Times)

EU and NATO membership

Highly developed logistical and transport infrastructure;

166 industrial parks

Strong presence of foreign and multinational companies

(27,000 firms)

High productivity

EU conform investment incentives

Favourable Political and Economic Environment

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Source: Business Monitor International, December 2004

(27.) (29.) (31.) (35.)

RankingRanking ScoreScore CountryCountry

1.1. 96.796.7 DenmarkDenmark

3.3. 95.895.8 CanadaCanada

5.5. 92.592.5 JapanJapan

14.14. 85.085.0 AustraliaAustralia

27.27. 76.376.3 HUNGARYHUNGARY

32.32. 73.873.8 PolandPoland

41.41. 70.870.8 Czech RepublicCzech Republic

46.46. 68.368.3 SlovakiaSlovakia

Long-term political stability

Favourable Political and Economic Environment

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20012001 20022002 20032003 2004 forecast2004 forecast

Gross domestic product (%) 3.83.8 3.53.5 2.92.9 4.04.0

Industrial production (%) 3.63.6 2.82.8 6.46.4 8.58.5

Exports (% - volume) 7.77.7 5.95.9 9.19.1 14.0**14.0**

Imports (% - volume) 4.04.0 5.15.1 10.110.1 14.0**14.0**

Consumer prices (%) 9.29.2 5.35.3 4.74.7 6.86.8

Balance of foreign trade* -2.5-2.5 -3.4-3.4 -4.2-4.2 -4.6-4.6

Current account balance* -2.0-2.0 -5.0-5.0 -6.6-6.6 -6.6-6.6

FDI* 4.44.4 3.23.2 2.02.0 3.03.0-3,5%-3,5%

Unemployment rate 5.75.7 5.95.9 5.85.8 6.06.0

* in billion Euro** at current prices Source: Hungarian Central Statistical Office, GKI Economic Research Institute of Hungary

Dynamic macroeconomic growth in figures

Favourable Political and Economic Environment

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