HUNGARY: the Reliable Partner No political risk No strikes No social conflicts No institutional risk Completed deregulation EU compatible institutions Developed banking system No financial risk Moderate income policy Sound & transparent fiscal policy Stable monetary policy … On an investment and export driven growth path together with the EU since the 1990s YES to Investments Hungary: The Reliable Partner Favourable Political and Economic Environment

Favourable Political and Economic Environment Ideal geographic location Connecting the most developed and the fastest developing countries Well-developed infrastructure Favourable legal environment Qualified and innovative labour force A BRIDGE binding West with East, North with South in Europe 4 Pan-European Corridors Gate to South East Europe Direct access to the EU Increasing competitiveness

 Region of the Future Award 2004/5 in Central Europe granted by fDi Magazine (Financial Times)  EU and NATO membership  Highly developed logistical and transport infrastructure; 166 industrial parks  Strong presence of foreign and multinational companies (27,000 firms)  High productivity  EU conform investment incentives Favourable Political and Economic Environment

Source: Business Monitor International, December 2004 (27.) (29.)(31.)(35.) RankingScoreCountry Denmark Canada Japan Australia HUNGARY Poland Czech Republic Slovakia Long-term political stability Favourable Political and Economic Environment

forecast Gross domestic product (%) Industrial production (%) Exports (% - volume) ** Imports (% - volume) ** Consumer prices (%) Balance of foreign trade* Current account balance* FDI* ,5% Unemployment rate * in billion Euro ** at current prices Source: Hungarian Central Statistical Office, GKI Economic Research Institute of Hungary Dynamic macroeconomic growth in figures Favourable Political and Economic Environment