NGM: Moody’s continues to recommend Hungary for investment
Moody’s has once again confirmed Hungary’s Baa2 sovereign debt rating, so the credit rating agency, like Standard and Poor’s and Fitch Ratings, continues to recommend our country for investment – the Ministry of National Economy (NGM) told MTI on Friday evening.
According to the statement, the Hungarian economy is on solid foundations: employment remains outstanding, with nearly 4.7 million people working, while the number of registered job seekers is at a record low.
More than Real wages have been growing continuously for 2 years, thus increasing consumption and setting new records in domestic tourism.
The government is helping Hungarian families and businesses with tax cuts and targeted programs even in the headwinds of war.
Confidence in Hungary is unbroken, which is confirmed by the ratings of credit rating agencies and bond issues.
– the ministry wrote.
This year’s foreign currency bond auctions proved to be outstandingly successful, with the ÁKK in three currencies – It also carried out issuances in euros, dollars and Chinese renminbi, with multiple oversubscriptions. This highlights that despite global challenges, both Western and Eastern investors view our country as a reliable partner and meeting point.
According to the NGM, strong investor and market confidence is also indicated by the continuous inflow of foreign direct investment.
Political stability, developed infrastructure, skilled workforce, and the exceptionally high profitability of FDI coming to our country continue to make Hungary attractive.
In addition to Western investments, the proportion of Eastern, Chinese, and South Korean investments is also increasing, so following the handover of BMW’s Debrecen factory on September 26, in the near future, such gigainvestments will be connected to the performance of the national economy, such as CATL, BYD, SEMCORP, or EcoPro.
Hungary’s finances are in order, so the government – despite the negative external economic environment – will provide all necessary resources for programs supporting families, pensioners, young people and businesses, such as: the fixed 3 percent Home Start Program, the fixed 3 percent SME loan, the doubling of the family tax allowance, the personal income tax exemption for mothers with two and three children, the 14th month pension or the Demján Sándor Program.
The government will implement all of this while maintaining fiscal discipline.
According to the announcement, the government is continuously working to achieve the highest possible economic growth, basing this on consumption-led growth in the short term and investment-led growth in the long term.
In order to achieve sustainable growth in the long term, the government is supporting the investments of domestic SMEs with more than 1,400 billion forints under the Demján Sándor Program, thereby increasing their size and productivity.
However, the government is not stopping here, it has introduced a fixed 3 percent SME loan, doubled the maximum amount of capital that can be invested in a business under the Demján Sándor Capital Program, launched the second phase of the 1+1 Program, and implements the 150 new factory program.
The government is supporting Hungarian businesses with tax cuts and cheap financing even in the headwinds of war.
As a further step, it is implementing an 11-point tax reduction program worth 80-90 billion forints, which will significantly reduce the tax and administrative burdens of 230-240 thousand businesses – the Ministry of National Economy wrote in a statement commenting on Moody’s decision on Friday.
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