Family-owned, rural small businesses have been considerably strengthened over the past eleven years, so they were able to develop even during the coronavirus epidemic, instead of laying off staff and closing down, Minister of Foreign Affairs and Trade Péter Szijjártó said in Pápa on Friday.
Speaking at the opening of the warehouse of Böllér Kft. in Pápa, the minister said that rural, family-owned businesses had never played such an important role in the Hungarian economy as they do now.
This sector is the soul of the Hungarian national economy,
The new 556 million forint project received 278 million forints of state funding, and in return, the company undertook to safeguard 32 jobs.
In his speech, Péter Szijjártó recalled that at the beginning of the pandemic, some people were of the opinion that as much aid as possible should be given on a social basis. However, the government believed this would put the country in a vulnerable position and therefore decided to finance the prevention of a surge in unemployment rather than mass unemployment itself, through its investment incentive program.
It was clear that after a while the market would recover and demand would return to normal. (...) And this could certainly not be served by those who have laid off workers, closed their factories, or reduced production capacity,
He emphasized that this concept had proved to be right, as Hungarian companies had become strong enough in the last 11 years to be able to develop at a time when businesses closed down elsewhere. As a result, he believed, Hungary has become one of the winners of the new world economic era.
He noted that economic growth in Hungary was 18 percent in the previous quarter, and 1,700 billion forints worth of investment projects are underway. In addition, there are 4.7 million people working in the country today, which is more than at any time since the change of regime, he pointed out.
While the world economy is forecast to reach pre-crisis levels only by the end of next year, the Hungarian economy already performed better this summer than before the pandemic, he said.
The Minister then added that 48 investment projects worth about 50 billion forints had been launched in Veszprém County with the help of the government's subsidy program, which contributed to the preservation of 12,000 jobs.
If we had listened to our opponents, there would be at least as many unemployed in the county now as a result of the pandemic,
He also mentioned that the Hungarian food industry performed excellently during the crisis; there were no disruptions in supply, and the performance of the sector has increased by 12 percent so far this year.