Hungary faces economic risks as foreign investment trends shift

Analyses of the Hungarian economic model highlight growing risks regarding foreign direct investment. Experts suggest that Eastern companies, particularly from China, often use Hungary as a gateway to the European market. If access to the region is restricted, these companies may relocate their investments and job creation to neighboring competitors.

This shift could impact the existing supply chain, affecting local small and medium-sized enterprises and even major German automakers like BMW and Mercedes, which rely on integrated suppliers such as CATL. Data from the Hungarian Central Statistical Office indicates a decline in investment volume, with the second quarter showing a 9.1 percent decrease compared to the same period last year.