BUDAPEST -(Dow Jones)- Hungarian small and medium-size enterprises are expected to recover somewhat in 2010 on rising exports and possibly joining supplier groups of global companies' local operations, Economy Minister Istvan Varga said Friday.
"As there's no hope for a domestic market expansion in Hungary this year, we are trying to encourage SMEs to focus on international expansion through our regional programs, as well as to supply global companies' local operations," Varga said at a press conference.
The Hungarian SME sector employs 1.7 million people, around 65% of the country's workers. While its gross contribution to the country's gross domestic product was 55% in 2008, it only made up 28% of Hungary's exports in the same year, according to the latest available ministry data.
The sector suffered badly from the economic downturn last year; 88% of the country's SMEs saw falling revenue, while 140,000 people were made redundant of those employed in the sector, the minister said.
The government--after supporting the sector with subsidies equaling 1% of gross domestic product last year--plans to make available 40 billion to 50 billion forints ($209 million to $261 million) in general subsidies in 2010, besides research and development, innovation, employment and other one-off subsidies.
Web site: www.nfgm.gov.hu
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