The European Bank for Reconstruction and Development (EBRD) has approved a new country strategy for Hungary, outlining priorities for the 2021-2026 fiscal period.
EBRD said that it will follow through on support and assistance for productivity enhancements, by way of new dynamic financing mechanisms and green developments, as part of their strategic preferences. EBRD also indicated that they would help provide intermediate transitory support, as would be required in support of Hungary’s economic recovery program, in the wake of the coronavirus pandemic.
In Hungary the EBRD will mainly focus on:
– Specific areas where growth disparities prevail and where the Bank can be additional support, including in the efforts to overcome the impact of Covid-19.
– Developing capital markets and on opportunities to deploy equity and innovative investment products, and where appropriate seek to address inclusion and governance issues.
– support projects in the fields of resource and energy effectiveness, decarbonisation and renewable energy. The EBRD Bank will continue to cooperate and work together with the authorities, including with: Ministry of Innovation & Technology on energy efficiency; and the National Bank on green bonds and other green commercial monetary products.
Since 1991 the EBRD invested about 3 billion Euros in Hungary through 190 projects.
The European Bank for Reconstruction and Development’s new country strategy acknowledged that the GDP growth for Hungary was the strongest among its comparative rivals over the past few years between 2014 and 2019, where the the average GDP growth rate amounted to 4.1 % for Hungary, which was substantially higher than the average growth rate of 3.3 % observed for other CEB economies.
Hungary had reported the most substantial GDP growth in the CEB (Council of Europe Development Bank) region, at 4.6 % in 2019. Overall, investment level was the highest in the region in 2019, at 28.6 % of GDP, significantly higher than the CEB average of 21.5 percent of GDP. The EBRD expects the Hungarian economy to rebound into a growth cycle this year, after the recession caused by the coronavirus pandemic.
Below is the outline of the International Partners’ Complementarity in EBRD Business Areas:
