Overview of the Hungarian Economy
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<link http: www.foundry-planet.com hungarian-foundry-industry00.html _top external-link-new-window> <link http: www.foundry-planet.com hungarian-foundry-industry00.html _top external-link-new-window>Hungarian Foundry Industry |
Although the extent of the Hungarian tax burden in general are moderate compared to that of order European countries. Business operating in Hungary can be characterized as highly profitable, and surprisingly the difference between the profitability of domestic and foreign-owned enterprises changed to a positive sign.
The inflow of foreign direct investment to Hungary today is not so high as it was for the past 15 years, but the result the FDI stock per capita is still the second highest (following the Czech Republic) in the region. According to the World Bank’s data collection Hungary has carried out major reforms since the last assessment had been published (only Greece, New Zeeland and the Czech Republic implemented more reforms among OECD countries).
The labour productivity is the second highest in Hungary among the Visegrád countries and that it is approaching the level of the enlarged European Union (10,0% today). Hungary still belongs to the economies characterised by relatively low unit labour costs. Prognosis for 2009 (previous year = 100): GDP increasing will be negative up to 3,6-3,9%; industrial output 70-74%; unemployment rate 9,4-9,8% balance of external trade –200 to -250 Million EUR; foreign direct investment will reduce up to 45 %; inflation 3,9% or less (2008: 6,1%); Forint exchange rate to EUR is estimated 275 HUF (2008 average was: 264,78 HUF).
Overview of the Hungarian foundry industry
The producing situation after the first half of 2009 is some behind the first half of 2008. The producing of the Hungarian Foundry industry during the first half of the last year in 2008 more or less was according to the annual plans of the Hungarian foundries. After having the strong recession in the Hungarian foundry sector during the second half of 2008 the contraction was some 26%. The iron and steel foundries were not so hard affected in 2008 as the non-ferrous (asp. the high pressure die casting foundries): the orders of these foundries were reduced with an average 15-20 %. The forecasts for the total year 2009 signs additional 20% to compare it to 2008. During the first quarter of 2009 the orders of the export orientated iron and steel foundries suffered an additional average 15-25 % reducing.
The non-ferrous foundries had to suffer during the last half of the year 2008 a 30-35% even 40 % of the order reducing about the automobile industry restriction. During the first quarter of 2009 the situation of the customer orders was decreased with additional 15-25% but we do see a reliable improvement of the automotive and additional industries as well. The producing in the first quarter of 2009 to compare to the first quarter of 2008 all together means some 35-45% decreasing in average. The forecasts for the total year 2009 sign additional 15-20 % comparing it to 2008 as a similar. After the first half of 2009 the orders of the export orientated non-ferrous foundries suffered additional average 15-25% reducing but for the second half of 2009 seems to start a small improvement: the old orders are not postponed away already even are added to them new (still) small orders.
The production of the ductile cast iron foundries was reduced practically with a 25% (2008/2007) and we do hope that the 2009/2007 ratio will not be more than 40-45% reducing as well. The performance of the Hungarian investment foundries in 2009 has reduced to the 2008 one. One of the biggest and most traditional investment foundries – after loosing 70% of the orders in 2009 has decided to finish its activity in the middle of April.
The total production of the Hungarian casting industry has been reduced with an appr. 16% in tons (2008/2007) and we estimate the 2009 performance decreasing the 2008 production with additional 9-10% as well. The reducing of the worker numbers and the costs savings activities by projects came into the pictures during the end of last year and the beginning of the year 2009 will be finished because the ordering situations are changed a little bit positive and the average ordering situations and the operation conditions are not worse even better than in April-May 2009.
