MENU
Susana de Ibarrondo

Seeking to Tighten Economic Ties

Edith Balázs
November 19, 2019

Apart from the 2008 and 2009 crisis years, the volume of bilateral trade between Spain and Hungary has been on the rise since Hungary’s 2004 accession to the European Union and has more than doubled from that date. Even though the bilateral trade and investment figures of recent years are encouraging, there is ample room for growth in both fields, says Susana de Ibarrondo, Economic and Commercial Counsellor at the Spanish Embassy.

Relations between Spain and Hungary have been built on a solid institutional framework that promotes and facilitates economic relations. “Although, bilateral trade has been traditionally more favorable to Hungary, the balance shows a reduction in the deficit for Spain due to the dynamism of Spanish exports in recent years. Moreover, the increasing volume of bilateral trade, which rose 6.5% in 2018 compared to 2017, reflects a positive development in commercial relations between the two countries,” Susana de Ibarrondo tells Diplomacy&Trade.
Spanish exports to Hungary have shown an encouraging tendency in the 2016-2018 period, reaching nearly EUR 1.8 billion last year, which represents an increase of 5.53% compared to 2017. On the other hand, Spanish imports from Hungary amounted to EUR 2.6 billion, rising 7.13% compared to 2017 figures.
“Our objective for the future is to strengthen trade and economic relations between Hungary and Spain, especially in the sectors where Spain has proven expertise such as infrastructure railway, specialized engineering services and high value-added exports. There is also margin to increase our trade in other sectors like technologies for intensive crops, consumer goods and e-commerce,” the counsellor says.

Automotive, machinery sectors in focus
Spain ranked as Hungary’s 11th largest export partner in 2018 with a share of 2.71% of total Hungarian exports and 15th as supplier, with a share of 1.6% of Hungarian imports. In terms of the sectorial distribution, the main concentration is in the automotive and machinery sectors.
Key products Spain imported from Hungary in 2018 were passenger cars and other automobile vehicles (11.67%), vehicle parts and accessories (10.6%), piston or explosion motors (9.88%) and medicines (3.13%). Concerning Spanish exports to Hungary in 2018, the highest monetary value corresponds to passenger cars and other vehicles, accounting for 20.1% of the total, vehicle parts and accessories (5.51%), piston or explosion motors (4.39%) and pork (3.55%). The textile and fashion sectors are also important in Spanish exports to Hungary. The strengthening of bilateral investment relations could bring important benefits for both countries.
“In terms of investments, both Hungary and Spain offer great opportunities for foreign investors and the strengthening of bilateral economic relations in the field of investment could bring important benefits for the two countries. Spain was the 8th largest recipient of FDI globally last year. This is an indication of the competitive advantages and opportunities our country offers as a destination of foreign direct investments,” according to Susana de Ibarrondo.
Global foreign direct investment inflows to Spain reached a record EUR 55 billion in 2018. However, the EUR 20.2 million stock of Hungarian investments is still modest leaving room for considerable improvement, she notes. Hungary’s investments are concentrated in sectors such as film and video distribution, civil engineering and real estate. “Gross investment flows from Spain to Hungary have been declining since 2007 and have been very low except for the years 2014 and 2017; they continue to be far from the figures reached in the years before the crisis,” Susana de Ibarrondo says. Nevertheless, the total stock of Spanish investments in Hungary reached EUR one billion in 2017. The largest Spanish companies present in Hungary are active in the automotive, electricity supply and the textile-fashion sectors, the most competitive areas of Spanish economy.
Spanish companies also play a significant role in the hotel sector in Hungary. “Hungarian companies could profit from the investment opportunities offered by Spain, especially considering that Spain is one of the most open countries to foreign investments. The OECD ranks Spain as the 10th country
in the world with the least restrictions on foreign investments from a regulatory point of view,” the counsellor says.

Gateway to the world
With 47 million inhabitants and 82 million tourists visiting the country each year, Spain is a key European market for investors and a gateway to non-European countries. Spanish companies are increasingly beginning to act as global players, seeking synergies that allow them to access business opportunities in third countries, particularly those in which they have natural access, such as Latin America. Additionally, the high degree of internationalization of the Spanish economy and its geostrategic location make the country an alluring platform from which to conduct business in the Western Mediterranean, Africa and the Middle East.
The counsellor highlights that Hungary has had a very good track record in attracting foreign investments in recent years, due – among other points – to its strategic position in the center of Europe and the proximity of important markets and production centers. However, one factor affecting foreign investors is the shortage of qualified labor, especially in the automotive and hotel sectors, according to Susana de Ibarrono.
“Hungary’s good economic performance and the positive prospects for 2019 are important in attracting foreign investment and all measures aimed at increasing the productivity and competitiveness of the Hungarian economy are very positive in this regard. Another aspect to be considered regarding foreign investment is the importance of predictability and regulatory stability because the decision to invest abroad is taken by companies based on long-term prospects and these two factors are essential.”

Edith Balázs

No comment yet. Be the first!

Leave a Reply

Your email address will not be published. Required fields are marked *

fifteen − 3 =

  • Top 5 Articles


  • Articles by Date

  • Hashtags

    #Abel Prize #Academy #Academy Awards #Accenture #Accident #acquisition #Adrian Ellis #Adriana Gonzalez #Advanced Power AG #Adventure #Advertising #Advertorial #Aerospace industry #Afghanistan #Africa #Agency #Agrarian industry #Agreement #Agricultural machinery #agriculture #Ahna Capri #air cargo #Air traffic #Air transport #air travel #Airbus Helicopters Hungary Ltd. #Airline industry #Airplane Gizi #airport cargo #Albania #Alberto Vercelli #Aldi #Alexander Tolkach #Aliza Bin-Noun #Allison Transmission Ltd. #ALTEO Plc. #Ambassador David B. Cornstein #Ambassador David Nájera #Ambassador Kumar Tuhin #Ambassador Massimo Rustico #Ambassador of India #Ambassador of Malaysia #Ambassador of the Republic of Korea to Hungary #Ambassadors #Ambassadors in Budapest #AmCham #American Airlines #American football #Amos Oz #Andersen Consulting #András Simor #Andrea Jádi #Andrew G. Vajna #Angela Merkel #Angola #Animal husbandry #Animals #Ankita Sood #Anna Nánási #Anna Olasz #anniversary #Annual report #Antal Dreher #Antal Rogán #Antal Vöneki #Anthony Nolan foundation #Antro Moveo #ANY Security Printing Company Plc. #Appeninn Asset Management Holding Plc. #Apple Design Awards #Ararat #archeological excavations #Archeology #Ariston Thermo Group #Armenia #Arms trade #Arraiolos Group #Arrow Architects #art gallery #Art Hall #Art treasure #ASEAN #Asset management #Association of Immortal Hungarian Athletes #Association of Innovative Pharmaceutical Manufacturers #aston martin #Astronomy #Athlete of the Nation #Attila Grandpierre #Attila Mesterházy #Audi #Audi Hungaria #August 20th #August 20th national holiday #Australia #Austria #Automobile industry #Automobile sales #automobile trade #automotive #Automotive industry #Automotive sector #AutoWallis #AutoWallis Group #Avatar #Aviation industry #Award #Azerbaijan
    #bag tag #bakery #Balassagyarmat #Balaton #Bálint gazda (Master Bálint) #Ballet company of Gyõr #Bálna event center #Baltic Sea Festival #Baltic states #Ban Ki-moon #Ban on hospital visits #Bank for International Settlements #bank loan #Bank of China #Bank transfer #Banking #Banking sector #Banking system #banknotes #Barack Obama #BASF #basketball #battery production #Battle of Mohács #BBC #Beer #Béla Bartók #Belgium #Bell Food Group #Benelux #Best of Budapest and Hungary #BHS Trans Limited #bicycle #Bicycle path #bilateral agreement #Bilateral relations #Bio ethanol #Biotechnology #Bisnode Hungary #Bisserka Benisheva #BKV #Black Ribbon Day #Blood donation #BMW #BMW cars #BMW Group #Boglárka Kapás #Bond issue #bond market #book festival #book review #Border control #border crossing #BorderLINE Architecture #Bozsik Stadium #brandy #Brazil #Brazilian Development Bank (BNDES) #Breeding #Brexit #British Ambassador #British Chamber of Commerce in Hungary #British Council #British Telecom #Broadband internet #Bronislaw Komorowski #Buda Castle #Buda Hills #Budakalász #Budapest #Budapest Airport #Budapest Airport Co. Ltd. #Budapest Chamber of Commerce and Industry (BKIK) #Budapest City Branding Nonprofit Ltd. (BVA) #Budapest Dessert competition #Budapest Eurogames 2012 #Budapest Festival Orchestra #Budapest film #Budapest Fire Service #Budapest ghetto #Budapest Highland Golf Club #Budapest hospitals #Budapest Jewish Community (BZSH) #Budapest Marathon #Budapest Mayor Gergely Karácsony #Budapest Millennium Underground #Budapest Municipality #Budapest ONE office building #Budapest Opera Ball #Budapest sights #Budapest Sports Office #Budapest Stock Exchange #Budapest Strings Chamber Orchestra #Budapest Week Publishing #Budapest Wine Festival #Budapest Zoo #Budapest Zoo and Botanical Garden #Buddhism #budget #Budget policy #Building supplies #Bulgaria #Bundesliga (Austria) #burglary #Buses #business #Business club #business costs #Business Council for Sustainable Development in Hungary (BCSDH) #Business Council for Sustainable Development in Hungary’s (BCSDH) #Business environment #Business promotion #Business services #Businesspeople #Busójárás #Butterfly Garden
    #cable car #campaign financing #Canada #Canadian Chamber of Commerce in Hungary #cancellation #Cancún Climate Summit #Canoe #capacity increase #Capital Circus of Budapest #car market #car racing #car rental #car sales #car sharing service #Car trade #carbon neutrality #Card payments #Carl Bildt #Carl Lutz #Carnival season #cars #Cartel #Cash #Cash payment #CEE region #Celldömölk #Census #Center for Budapest Transport (BKK) #Center of Excellence #Central Bank #Central Europe #Central European Initiative #Central European Press and Media Foundation (Kesma) #Central European University #Central European University (CEU) #Central Statistical Office #Ceremony #CERN #Cervantes Institute #Cetelem Bank #Chamber #Chamber of commerce #Champagne #Chang Sun Dong #Charbel Stephan #Charity #Chemical Industry #Chemistry #chess #Chief Medical Officer Cecíla Müller #Chief Medical Officer Cecília Müller #China #Christian Mühlethaler #Christmas #chronic patient #Chung-ha Suh #CIG Pannonia Life Insurance Plc. #cigarettes #cinema culture #Citibank #City diplomacy #Civil engineering #Civil Movement #CLA 250 e Coupé #CLA 250 e Shooting Brake #climate change #CMS Cameron McKenna #cobot #Code of Civil Procedure #Collector coins #Colleen Bell #Colliers International #Colorful City Group #columbia #Commemoration #Commemorative coin #Commerce #Commercial accommodation #Communications #Competition #Competitiveness #Concert #Conference #Conscious Consumption #Constitution #Constitutional Court #Construction #Construction industry #Consuls #Consultancy #consumer confidence index #Consumer prices #Contactless payments #contemporary art #contest #Convention tourism #Convertiplane #COP26 #Cordia #Corinthia Hotel Budapest #coronavirus #Coronavirus epidemic #Coronavirus test #Corporate issues #corporate merger #Corporate real estate #Corporate social responsibility (CSR) #Corruption #countryside #Courts #Covid-19 coronavirus #Covid-19 pandemic #Crime #crisis #Crisis management #Croatia #cronyism #Csodalámpa (Magic Lamp) Foundation #Csopak #cultural festival #cultural institute #Cultural Interview #Culture #currency #Customer service #customs service
    #D.C. #DAB+ #Dag Hartelius #Daikin #daily death toll #Dalai Lama #Dániel Gyurta #Danube #Danube Bend #Danube cruise #Darfur region #David Cornstein #Death #Debrecen #Debrecen Carnival of Flower #Debt #decision-making #Defense #defense industry #Deloitte #Deloitte Digital Hungary #Deloitte Hungary #Deloitte Technology Fast 500 EMEA list #Delta Group #Democracy #Democrats Abroad-Hungary #Demonstration #Denmark #Denso Manufacturing Hungary #dental tourism #Deputy CEO of the Hungarian Tourism Agency (MTÜ) #Derks Wilhelmus Jose­phus #Deutsche Telekom #Deutsche Telekom IT and Telecommunications Hungary #Deutscher Wirtschaftsclub – DWC #Development program #Digital banking #digital channels #digital classroom #Digital education #Digitalization #Dimitris Yannakakis #dinosaurs #Diósgyőr Castle #Diplomacy #Diplomacy and Trade Business Club ('The Club') #Diplomatic Spouses of Budapest #Disability Caucus #Disadvantaged people #Disaster #Disaster Management #Disaster management legislation #disinfectant #Dividend payments #Domestic issues #Domestic tourism #Dominik Szoboszlai #donation #Dr. Andrea Jádi Németh #Dr. György Kárpáti #Dr. István Béres #Dr. János Szlávik #Dr. László Szabó #Dreher Beer Museum #Dreher Breweries #Drugs #DT April 2009 #DT April 2010 #DT April 2011 #DT Business & Culture Club #DT December 2009 #DT February 2009 #DT February 2012 #DT January 2011 #DT January-February 2013 #DT July-August 2011 #DT June 2009 #DT June 2011 #DT March 2011 #DT May 2010 #DT May 2011 #DT November 2010 #DT October 2008 #DT October-November 2011 #DT September 2009 #Dual education #Duna Elektronika #Duna House #Dyntell Hungary Ltd.
    #e-mobility #E.ON #East Central Europe #Easter #EBITDA #ECOFIN #Economic forecast #economic reform #Economic relations #Economic sentiment index #Economy #Edit Herczog #Education #Eger #Egyházasrádóc #Egypt #Eisberg #EIT Health #Elderly home #Elections #Elections in Hungary #Electric charger #Electric vehicle battery #Electric vehicles #Electricity #electricity industry #Electro-mobility #Electrolux #Electronic industry #Electronic payment #Electronic Payment Service Providers’ Association (EFISZ) #Electronic Payment Strategy (EPS) #Electronics industry #Eleni Tsakopoulos-Kounalakis #ELTE #EMEA region #Emergency #Emigration #Emmy Awards #Employees’ rights #Employment #Enda Kenny #Endre Szemerédi #Energy industry #energy policy #Energy production #energy security #Energy supply #Engineering #Enikõ Gyõri #Enikő Mihalik #Enrique Pastor de Gana #Environment #environment protection #Eörs Szathmáry #epidemic #Epidemiological preparedness #epidemiological restrictions #Equestrian event #Equifest #Ernõ Rubik #Erste Bank #Ervin Zádor #Esther Horvath #Eszter Cseke and Andras S. Takacs #Esztergom #Ethanol #EU #EU affairs #EU cooperation #EU funding #EU funds #EU General Court #EU loan #EU Presidency #EU supported projects #EuCham - European Camber #Eucham European Chamber #Euro (EUR) #Europe Day #European Automobile Manufacturers Association (ACEA) #European Capital of Culture #European Central Bank (ECB) #European Championships #European Climate Bank #European Commission #European Court of Justice #European Court of Justice (ECJ) #European Day of Parks #European Football Championship #European Green Deal #European Institute of Innovation and Technology (EIT) #European Molecular Biology Organization (EMBO) #European Parliament #European Union #European Year of Volunteering #Eurowings #evacuation #Event industry #Exchange rate #Exhibition #Exhibition site #Export promotion #Exports #Exposition #External Action Service of the European Union #External trade
    #H-UNCOVER #Hableány (‘Mermaid’) river cruise ship #Hackathon #Haiti #Half-year report #Hamad International Airport #handball #Hankook #Használtautó.hu #Health #healthcare #Healthcare workers #Heat record #Heavy industry #Heim Pál National Pediatric Institute #Heineken #HEINEKEN Hungária #Hell Energy Hungary Plc. #Henkel #Herbert Fisch #Herman Van Rompuy #Hidden Power #highway #Hillary Clinton #History #Hódmezővásárhely #Holiday season #Hollywood #Holocaust #Home office #Home quarantine #Homokhátság #Honorary consul #Honorary consuls #hops #Horizon Development #Hörmann Hungária #horticulturist #Hortobágy Bridge Fair #Hortobágy National Park #hospital #Hospitality #Hospitality business #Hospitals #Hotel boats #hotelier #hotels #House concert #Household products #Housing #Housing market #Hoventa #HR Services #huawei #Human rights #Hungarian Academy of Sciences #Hungarian Academy of Sciences (MTA) #Hungarian Ambassador to the U.S. #Hungarian Banking Association #Hungarian Chamber of Health Care Professionals (MESZK) #Hungarian Competition Authority #Hungarian cultural season #Hungarian Democratic Forum (MDF) #Hungarian diplomats #Hungarian economy #Hungarian EU Presidency #Hungarian European Business Council (HEBC) #Hungarian F-1 Grand Prix #Hungarian Film Week #Hungarian Foreign Ministry #Hungarian Foreign Ministry (Ministry of Foreign Affairs and Trade) #Hungarian forint (HUF) #Hungarian GDP #Hungarian gov't vs. EU #Hungarian government #Hungarian Holocaust #Hungarian Independent Trans­mission Operator Company Ltd. (MAVIR) #Hungarian industry #Hungarian Interchurch Aid #Hungarian inventors #Hungarian Investment and Trade Agency (HITA) #Hungarian Investment Promotion Agency (HIPA) #Hungarian Labor Code #Hungarian language #Hungarian Maltese Charity Service #Hungarian Medical Chamber #Hungarian military #Hungarian Ministry of Finance #Hungarian Ministry of Foreign Affairs and Trade (KKM) #Hungarian Museum of Science #Hungarian Museum of Science Technology and Transport #Hungarian National Asset Management Inc. (MNV) #Hungarian National Blood Transfusion Service (OVSZ) #Hungarian National Gallery #Hungarian National Museum #Hungarian Olympic Committee (HOC) #Hungarian Open Air Museum #Hungarian Parliament #Hungarian President János Áder #Hungarian Press Photo Exhibition #Hungarian Red Cross #Hungarian society #Hungarian Tourism Agency (MTÜ) #Hungarian-born #Hungarians abroad #Hungaricum #Hungaroring #Hungary #Hungary tourism #Hungexpo #hybrid car #Hygiene #hygienic safety #Hyundai
    #Machinery industry #Madagascar #Mads Sandau-Jensen #Magyar Rádió (Hungarian Radio) #Magyar Suzuki #Magyar Telecom #Magyar Telekom #Magyarföld #Mahart Passnave #Malay Mishra #Malév Hungarian airlines #Manfred Bey #marathon run #Maria Assunta Accili Sabbatini #Marketing #Markku Virri #Martin Gauss #mask-wearing #MASTERPLAST #Mateco-Hungary Ltd. #Matei I. Hoffmann #Mátra Hill #Matriculation exam #Matterhorn #MÁV Hungarian Railways #Maximilian Hell #Media #Media law #Mediaworks #Medical industry #Mellow Mood Hotels #Memorial walk #Mercedes #Mercedes Benz #merkel #Messer #Mexican Embassy in Budapest #Mexico #MFGK Croatia d.o.o. #Michael Ignatieff #Midsummer night #Migration #Mihály Kolodko #Mihály Munkácsy #Mihály Varga #Miklós Radnóti #Mikulás Dzurinda #Military #Millennium generation #Minister of Agriculture István Nagy #Minister of Defense #Minister of Foreign Affairs and Trade #Minister of Human Capacities #Ministry of Human Capacities (EMMI) #Ministry of National Development #Ministry of National Economy #Ministry of the Interior #Minorities #Miroslav Lajèák #Miskolc #Miskolc rally #missiles sales #Mitt Romney #Mobile base station #mobile broadband #Mohács #MOL #MOL Group #MOL Hygi #Monetary policy #Monostor Bridge #Monterrey #Moody's #Móric Benyovszky #Mortgage #Motion picture #motoGP #Motorway #Mountaineering #Movement restrictions #Municipal elections #Municipality #mural #museum #Museum of Fine Arts #Music #Music in the Forest - Mátra Art Days #MVM Group
    #São Tomé and Príncipe #Sali Berisha #Sameer Hamdan #Samsung #Samsung SDI #Samyang Biopharm #Sándor Csányi #Sándor Demján #Sándor Képíró #Sándor Kiss #Sándor Kőrösi Csoma #Sándor Pintér #Sang Il Lee #Saudi Arabia #Scandal #Scholarship #School year #Schools #Science #scuba diving #second-hand car sales #security issues #Semmelweis University #Semmelweis University of Budapest #Sérgio Eduardo Moreira Lima #Service center #Service sector #sewage water #Shanghai #Shanghai World Expo 2010 #Shapr 3D #Shell #shopping #short film #shortage #show jumping #Siemens #Sika #Singapore #Singapore Airlines #Siófok #Skanska #Skanska Hungary #Slovakia #Slovenia #Slovenian Tourism Organization (STO) #Sludge #Smartphone application #SME Robotization Barometer #SMEs #Smoke-free future #Soccer #Social(i)Makers #Society #Society for Freedoms #Solar energy #Solar panels #Solidarity Club #Son of Saul #South Africa #Soviet Union #Space research #Spain #Spanish language #SPAR #Spar Hungary #special taxes #Sponsorship #Sports #Sports club #Stadler #Stalinism #Start-ups #State Auditing Office #State of danger #State of emergency #State of the Nation #Statistical data #Statue #Stefan Pop #stepdance #Stock exchange #Stockholm #Sudan #Suh Chung-ha #SUHANJ! Foundation #Sumatran orangutan #Summer Olympic Games #SunDell Estate Plc. #Sunshine Garage #Supercharge Ltd. #Superfast Internet Program #Supermarket chain #Suppliers #Suriname #survey #Sustainability #Sweden #Sweet Days Budapest #Swimming #Swiss Embassy - Budapest #Swisscham Hungary #Switzerland #Symbol #Syria #Szabolcs Takács #Szamos Marzipan #Szeged #Szeged Open-Air Festival #Szeged wholesale market #Szentendre #Szerencsejáték Plc. #Sziget #Szusza Ferenc Stadium
  • © Copyright 2020 Duax Kft. –  All rights reserved.
    searchenvelope-oalign-justifytwitterfacebookfeedinstagrammoon-osunearth