Economics

Low wage costs have attracted some Hungarian manufacturing companies to relocate production to Slovakia, Romania, Ukraine and Serbia, and it is not unlikely that this new trend will intensify, according to László Parragh, president of the Hungarian Chamber of Commerce and Industry. Although wages stand at approximately the same level in Ukraine, Serbia and Romania at about 35% of the Hungarian average, political and legal uncertainty make the first two far less attractive locations, Parragh said, adding that consumer electronics manufacturer Videoton Rt has recently decided to build a new plant in Ukraine in spite of the difficulties. Business activity between Hungary and Slovakia is buoyant in both directions, while Hungarian investment in Romania is not reciprocal. (Vg 1) P.P.

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