Local services
Debrecen’s economic development has gained momentum, as evidenced by the start of production by BMW this year, as well as the recently completed 15,300 square metre production hall and the planned HUF 8 billion logistics investment in the Southern Economic Zone. Large capacity expansion investments can contribute up to several tenths of a percentage point to GDP growth, while significant labor market effects must also be expected. The developments can have a positive impact on the economy of the entire region, creating new opportunities for companies involved in the supply chain.
The city’s development is further strengthened by the recent handover of a 15,300 square metre production hall, jointly developed by Panattoni Hungary and OTP Real Estate Investment Fund, which will supply chassis to BMW’s Debrecen plant. In addition to the nearly 7.5 billion forint investment, the latest development is that Debrecen-based Xanga Park Kft. is investing approximately HUF 8 billion to create a new logistics hall in the city’s Southern Economic Zone, which also houses the developments of CATL and EcoPro.
The economic development of the region is also supported by other significant projects: the NAGISZ Group is investing HUF 40 billion to completely switch to broiler chicken production in Hortobágy, planning to produce 35-38 million day-old chicks per year, which could make it one of the leading players in the domestic market. Positive trends can also be observed in the field of tourism, as more than 690 thousand guest nights were spent in Debrecen last year, showing a significant increase in the number of both domestic and international visitors.
Local business owners can also participate in large-scale projects
Large capacity expansion investments are key to economic prospects, especially CATL and BMW in Debrecen, BYD in Szeged, and the automotive developments in Kecskemét. These projects alone can contribute up to several tenths of a percentage point to GDP growth.
Of course, the labor market effects of giant investments can also be significant. BYD’s development and logistics center alone can employ around 2,000 people, while the larger factories together can employ several thousand people in the short term, and tens of thousands by the end of the decade. This can also cause labour market tensions in the given regions, as these areas are already experiencing labor shortages. It is questionable whether the necessary labour will be provided from other sectors or with foreign workers.
Local small and medium-sized companies should also pay attention, as these new factories represent a serious opportunity for suppliers and can have a long-term impact on their operations. The developments will have an impact on the economy of the entire region: they can boost the construction industry, the real estate market, logistics areas, tourism and hotel developments.
That is why Portfolio is organising the Eastern Hungary Economic Forum on 4 June , where they will present these opportunities, help find appropriate financing, and support regional companies in increasing their efficiency and competitiveness.
The event will discuss, among other things, the current affairs of the Széchenyi Card Programme, 0% EU business development loans, Debrecen urban development programmes, the competitive advantage inherent in energy efficiency and digitalization, and the effects, of the tariff war that also affects Hungarian companies.
More information about the Eastern Hungary Economic Forum can be found by clicking. here.
Source:dehir.hu Photo credit:debrecen.hu
