hungary in the heart of europe
DESCRIPTION
Hungary in the heart of Europe. Hungary in the heart of Europe. Hungary and bordering countries. Employment in Hungary. Number of employed : 3 909 000 Unemployed : 328 000 Unemployment rate : 7,7 % Average salary : 730 € (pre tax) 580 € net for employees and 340 € for skilled workers. - PowerPoint PPT PresentationTRANSCRIPT
Hungary in the heart of Europe
Hungary in the heart of Europe
Surface 93 036 km2
Inhabitants 10 051 000
Capital Budapest
Other important cities Debrecen, Miskolc, Pécs, Szeged, Győr
Regions 7
Micro - regions 19
Currency Hungarian Forint (HUF)
1 Eur = 260 HUF
Hungary and bordering countries
GDP by economic sectors
70%
4%
21%
5%
Agriculture
Industry
Construction
Services
Major exports
1,9%2,5%5,5%
27,6%
62,4%
Machinery & Equipment
Other manufactures
Food, beverages & tobacco
Raw materials
Others
Employment by Main Activities
4,8%
32,3%
62,8%
Agriculture
Industry
Services
20012001 20022002 20032003 20042004 20020055 20020066 2007 2007
Gross domestic product (%) 3.83.8 3.53.5 3.43.4 4.64.6 4.44.4 3.93.9 3.03.0
Industrial production (%) 3.63.6 2.82.8 6.46.4 7.47.4 7.07.0 10.310.3 8.28.2
Exports (% - volume) 7.77.7 5.95.9 9.19.1 18.418.4 11.511.5 16.716.7 15.7**15.7**
Imports (% - volume) 4.04.0 5.15.1 10.110.1 15.215.2 6.16.1 12.612.6 11.9**11.9**
Trade balance (bn EUR) -2.5-2.5 -3.4-3.4 -4.2-4.2 --33..99 -2.9-2.9 -2.4-2.4 0.4**0.4**
Inflation (%) 9.29.2 5.35.3 4.74.7 6.86.8 3.63.6 3.93.9 8.08.0
Current account (bn EUR) -2.0-2.0 -5.0-5.0 -6.4-6.4 --77..11 -6.5-6.5 -5.8-5.8 -2.9-2.9
FDI (bn EUR) 4.44.4 3.23.2 1.91.9 3.73.7 5.65.6 6.16.1 1.8*1.8*
Unemployment rate 5.75.7 5.95.9 5.85.8 6.6.11 7.27.2 7.57.5 7.77.7
Employment in Hungary
Number of employed : 3 909 000
Unemployed : 328 000
Unemployment rate : 7,7 %
Average salary : 730 € (pre tax)
580 € net for employees and 340 € for skilled workers
Age Activity 15 - 74 54,9%15 - 64 61,9%
15 - 60/61
64,9%
Source: Hungarian Central Statistical Office
Sustainable macroeconomic growth, EU-member since 2004
GDP growth of 3.2% is expected this year with a 5% improvement of the business sector’s performance
Industrial production growth is estimated to keep its pace at around 8% Export growth of 13% is forecast
Unemployment rate is expected at 7.4%Average wage: € 712
Average inflation rate will be around 5%
Economy
GDP
Output
Employment and wages
Inflation
Forecast 2008
•Austerity measures in 2006 aimed at reducing the budget deficit. •Endeavours to adopt the Euro to curb the inflation. •In medium term Hungary is expected to meet the Maastricht criteria.
2008 2009 2010 2011
GDP growth 2.8% 4.2% 4.3% 4.5%
Real wage growth
0 1.5%1.5-3.0%
1.5-3.0%
Budget balance as % of the GDP
-4.1% -3.2% -2.7% -2.2%
Inflation 4.5% 3.0% 2.8% 2.5-3%
64%
16%5% 2%
13%
EU-15 New EU-10 Other European countries Asia Other countries
Hungarian Imports:Hungarian Imports:EUR 61.3 billionEUR 61.3 billion
Source: Hungarian Central Statistical Office
Hungarian Exports: Hungarian Exports: EUR 58.9 billionEUR 58.9 billion
Hungarian Foreign Trade, 2006
11%
2%16%
14%
57%
6% 2%
28%
3%61%
Food, drinks and tobacco Raw materials
Energy resources Manufactured products
Machinery
Source: Hungarian Central Statistical Office
4% 2% 10%
33%
51%
Hungarian Exports: Hungarian Exports: EUR 58.9 billionEUR 58.9 billion
Hungarian Imports:Hungarian Imports:EUR 61.3 billionEUR 61.3 billion
Hungarian Foreign Trade, 2006
99,7
0,3
65
35
49,8
50,2
59,9
40,1
26,6
73,4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Distributionof
enterprisesby size
Share intotal
employment
Contributionto GDP
Share intotal net
sales
Contributionto total
export sales
Large corporations
SMEs
.
Source: Ministry of Economy and Transport
in %in %
Structure of the Corporate Sector in Hungary
Cumulated FDI* in Hungaryin million euros
Source: National Bank of Hungary, Ministry of Economy and Transport * Including reinvested earnings from 1995
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
55 000
60 000
65 000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006Q32007
66,823
56
52
32
22
1
0 2 4 6 8 10
Hong Kong
Hungary
Slovak Rep.
Czech Rep.
Poland
Number of countries assessed: 123
Source: Fraser Institute
Country with ranking
Economic Freedom Ratings
High Performing Sectors Automotive industry
Electronics
ICT
Life sciences
Renewable Energy
Logistics
TOP 200 Hungarian companies (by revenue) by sector
Wholesale and retail trade
Energy supply and trade
Trasnportationmanufacturing
Food and tobacco
Services
Electronics
Construction
Pharmaceuticals
Telecommunications
Transportation
Chemicals
Metals
Textile
Forrás: HVG, 2007 január
Trade (42)
Energy
(34)
Transportation manuf.(22)
Food (20)
Services
(18)
Electronics
(14)
GDP production by sector (2006)
Services 56% Other
14%
Agriculture 4%
Industry
22%Construction
4%
Forrás: KSH
Services give 56% of the GDPServices give 56% of the GDP
Major branches in manufacturing:
Electronics (24%)Food (13%)
Transportation equipment (11%)Chemicals (10%)
In services:Financial services (34%)
Public (28%)Trade and tourism (19%)
Venture capital
Priority sector of the Hungarian Venture Capital Association include:
Telecom, media, financial service, pharmaceuticals, biotechnology, logistics, environment, nanotechnology
The interest of the venture capital has grown in the knowledge intensive sectors. Investment volumes/project have declined to the € 1-1.5 million range.
Production ValueEUR 10.6 billion
18.6% of total industrial production and 13.4% of totalexports
Total number of companies: 634Number of companies with quality certificates: ~ 250
Advanced automotive systems in place: ~ 110companies
Total number of employees: ~ 97,000 people
Export ratio: - car manufacturers 94% - engine and component manufacturers: 88%
Most important export market: European Union
Sales in 2006:Passenger cars: 187,842 pcsCommercial vehicles & buses: 28,154 pcsMotorcycles: ~15,000 pcs
Automotive
High Performing Sectors
Production Value: € 36 billionTotal number of companies: 18 500Total number of employees: 250 000Export ratio: 67%Most important export market: EU-27Total FDI stock: € 10 billion
Interest of foreign investors has beensustained. Latest invetments include: AtlasCopco (S), Sematic (I), Widenemann (G),
AKE (G),
Machinery
High Performing Sectors
Hungary is the largest electronicsproducer and exporter in the CEE region by providing 40% of the regional output and nearly
50% of the exports.
Production Value: USD 19 billion
29% of total manufacturing production29.4% of total exports
Total number of companies: 9,000Total number of employees: 135,000
Export ratio: 87%
High Performing Sectors
Electronics
Hungary has the second highest share of ICT goods in the country’s export in the OECD
Hungary has the highest per capita ICT expenditure in the CEE region
The Hungarian ICT market grew with 50% between 2002-2007
Highly skilled, cost efficient labour pool, growing number of IT graduates
Strong cooperation between business and academia in R&D, like Nokia, Ericsson, IBM, CISCO, SAP, Oracle, SUN
Electronics
High Performing SectorsICT
Number of institutions in higher education: 71Number of students in higher education: 416.4 thousandMajoring in: Business and Administration: 105 th Informatics: 17.7 th Number of graduates in 2007: 57.7 th
Budapest 161,300
Szeged 30,00Pécs
Pécs33,100
Veszprém 10,600
Miskolc 13,600 Debrece
n25,200
90% of students speak English2nd most popular foreign language: GermanFollowed by: French, Italian, Spanish
All diploma with foreign language certificate and computer skills!
Well trained, creative and flexible human capital
Training in Hungarian enterprises
Professional trainings appeared after 1989 as a request by international and multinational companies
Diffusion of trainings by 2004 similar to the development of economy
Open trainings are much less diffused than company trainings
Average time : 4-5 / person / year
Most of the trainings for :
• middle managers• sales and customer service• top managers• low level managers and employees
Training in Hungarian enterprises
Training in Hungarian enterprises
Interactive training solutions (distant training and e-learning) are slowly diffusing
E-learning has gained territory in public institutions and among big companies : telecommunication and information technology
Effective : high number of participants
regular trainings
short units
Multinational companies use existing e-learning curricula in English without adapting it to local circumstances and are still trying to select the suitable solutions
Training in Hungarian enterprises
According to experts e-learning is used mainly in the following fields :
• new employees
• management trainings
• sales
• labour safety and fire prevention
• language
•IT
Training in Hungarian enterprises
SMEs are still not open (lack of funds and interest)
On the training market traditional methods are prevailing (off-line)
Lack of expertise
In Hungary self-education does not have tardition
Human factor is very important
Increasing effectiveness by mixing electronic curricula with traditional training methods
Hungarian companies do not possess necessary expertise to introduce blended learning systems
Some examples (IQ Consulting) :
British-American Tobacco Hungary :Actions against smoking, restrictions in advertising change managementTraining for a high number of employees to support change in mentality / attitude in a fast, practical and cost-effective way
Training in Hungarian enterprises
Hungarian PostOne of the largest employers in Central EuropeLiberalization of the market changes in organization and culture
Training for 1000 medium managers
me-Learning : Change Management courseElectronic simulation + opening and closing workshops
Training in Hungarian enterprises
me-Learning : Change Management course to integrate existing training
Simulation + 2 workshops
Positive feedback, positive results
Founded in 2002
Supporting SMEs to increase competitiveness in Europe
Activities :
• Consulting to SMEs on European funds, project planning and project management
• Organization of trainings, conferences
• Realization of projects on innovation for SMEs
• Market research
Projects 2005 – 2007 :
EQUAL : reintegration of women with small children in the labour markethttp://www.eselybolcsodeje.org
Leonardo Program – ISI : Innovation through Services in Industry
ESF Art. 6 – SAM : Senior Age Management
Leonardo Program - E-district CIPRO : European Distant Training Interactive and Collaborative Tools for Civil Protection
Projects 2008 – 2009 :
EQUAL : Dissemination and mainstreaming of results
Asia Invest : supporting business relations between Asian and European enterprises in the food processing sector
Projects 2008 – 2009 :
Leonardo Innovation Transfer Projects
Leonardo SILVER : toolbox for age management
Leonardo METAL : development of the European Qualification Framework
Leonardo BELT : Blended learning transfer
Kopernikusz Association
1056 Budapest, Váci u. 81.
Tel : +36 1 4113356 or 4113357
Fax : +36 1 2695625
E-mail : [email protected]
Web : www.kopernikusz.hu