Pharmaceutical Industry’s Impact on Economic Growth
The Hungarian Government is Taking Steps to Boost the Country’s Pharmaceutical Industry
The Hungarian government has announced plans to enhance the long-term and sustainable competitiveness and performance of the Hungarian pharmaceutical industry. The Minister of Economic Development, Márton Nagy, revealed that measures are being taken to stimulate economic growth, increase employment, and prioritize the development of key sectors, including the pharmaceutical industry.
One of the key initiatives involves providing pharmaceutical distributors with the opportunity to significantly reduce their extra profit tax liability by the value of their investments. This move is aimed at encouraging further investment in the industry and supporting its growth.
Nagy emphasized the importance of the pharmaceutical industry as an economic ecosystem that can make a significant contribution to the development of the economy through multiplier effects. The government is committed to strengthening the country’s sovereignty and crisis resistance by increasing the share of Hungarian products in the healthcare sector from 15 to 30 percent and boosting research and development performance.
The pharmaceutical sector currently employs nearly 32,000 people and has a production value of over HUF 1,200 billion (EUR 3 billion), with 87 percent of export sales. The sector’s research and development performance is particularly notable, with 15 percent of the workforce employed in R&D and the sector accounting for 30 percent of total R&D expenditure in the country. This has contributed to the high value added by the pharmaceutical sector, exceeding HUF 30 million (EUR 78,944) per employee.
Despite the challenging economic situation, the pharmaceutical industry has demonstrated strong performance, with the production value of the manufacturing sector increasing by 14 percent in the first eight months of the year.
The government’s commitment to supporting the pharmaceutical industry’s growth and development is a positive step towards enhancing Hungary’s position in the global pharmaceutical market and ensuring a resilient and prosperous future for the industry.
