Photo:
29/01/2025 21:09
First of all, allow me to extend a warm welcome and thank you for your attention and interest in the development of Kazakh-Hungarian relations.
As you know, the Kazakhs and the Hungarians are related peoples, linked by long-standing friendly relations. The two countries have similar languages, customs and cultures.
Politically, Hungary is one of Kazakhstan's most important partners in Central and Eastern Europe and the European Union in general. Today, bilateral relations between Kazakhstan and Hungary are developing in an atmosphere of mutual understanding and trust. There are no unresolved issues or disagreements between the two countries, and the increasing number of mutual visits and meetings between high-ranking officials of the two countries confirms the high level of the strategic partnership between Kazakhstan and Hungary, which turned 10 years old last year. In this context, I would like to mention the statement of Kazakh President Kassym-Jomart Tokayev on Kazakh-Hungarian relations. This is clear evidence of mutual understanding and the willingness of the two countries to strengthen cooperation between Astana and Budapest".
And in this regard, the Kazakh President's state visit to Hungary in November 2024, as well as the friendly relations between our countries, supported by mutual declarations of common historical roots between the parties, will lay the foundation for the successful development of bilateral relations.
As for the economic relations between our countries, they are actively developing and the meetings of the Hungarian-Kazakh Intergovernmental Committee for Economic Cooperation and the Strategic and Business Councils are undoubtedly contributing to the expansion of economic cooperation.
Hungary is one of Kazakhstan's most important trade and economic partners in Central and Eastern Europe. Trade between our countries will exceed USD 131 million by August 2024. This is 6.3 per cent higher than in the same period in 2023 (USD 123.3 million). In 2023, bilateral trade between our countries totalled USD 187.6 million. At the same time, according to Hungarian statistics, the trade turnover between the two countries in 2023 amounted to USD 575 million (imports - USD 360 million, exports - USD 215 million). It should be noted that such a discrepancy in the figures for trade flows between our countries is due to the different calculation methods used for the statistics.
In Kazakhstan, great attention is paid to attracting foreign investments, as nowadays Kazakhstan represents a new opportunity and a huge potential for profitable investments. Our Republic occupies an important strategic position, providing a favourable environment for business activity, protection of investors' rights and investment incentives.
Thanks in large part to Kazakhstan's attractive investment climate, Hungary is an important investment partner for our country. We are positive about the current dynamics of investment cooperation between our countries and see significant potential for further expansion of our partnership.
Today, more than 70 companies are already represented in the Kazakh market with Hungarian participation, including flagship companies of the Hungarian economy such as MOL Group (oil and gas), Richter Gedeon (pharmaceuticals), Globalia (green energy), Water&Soul (water saving technologies), and in the field of agriculture UBM Group, LAC Holding and Alfaseed.
According to the National Bank of Kazakhstan, FDI inflows in the first half of 2024 amounted to USD 25.2 million, which is already 1.6 per cent higher than the annual figure for 2023 (USD 24.8 million). In the period from 2005 to the first half of 2024, gross FDI inflows from Hungary to Kazakhstan totalled USD 368.7 million.
Despite the difficult external economic conditions and the changing global market situation, Kazakhstan has shown sustainable economic growth. Thus, today Kazakhstan is actively promoting innovation and technological development, as confirmed by our ranking in the Global Innovation Index 2024, where Kazakhstan is ranked 78th among 133 economies.
In addition, Kazakhstan was ranked 34th out of 64 countries in the 2023 Global Digital Competitiveness Index, demonstrating our commitment to creating a dynamic and innovative digital environment. Kazakhstan continues to provide a transparent and stable environment for investors, for example through tax incentives and simplified registration procedures, making it attractive to international businesses and investors.
Last year, credit rating agencies confirmed Kazakhstan's sovereign debt ratings as stable. On 1 March, S&P affirmed Kazakhstan's sovereign rating at 'BBB-/A-3' with a stable outlook. On 17 May, Fitch affirmed Kazakhstan's sovereign rating at 'BBB' with a stable outlook. Moody's upgraded Kazakhstan's sovereign rating from 'Baa2' to 'Baa1' on 9 September, also with a stable outlook.
I would also like to inform you that an important event is planned in Astana at the end of May 2025. The Astana International Forum will bring together high-level delegates from all over the world to exchange views on the most pressing issues of our time and to identify new areas of cooperation. We hope that the Hungarian side will participate in this event.
In particular, we would like to highlight that the Stipendium Hungaricum programme provides 250 scholarships for Kazakhstani students to study in Hungary.
Finally, I would like to say that Kazakhstan and Hungary are deepening their cooperation, and it is the task of diplomats - especially mine - to facilitate this process. In this regard, I would like to invite Hungarian entrepreneurs, through this magazine, to actively participate in the implementation of investment projects in Kazakhstan. The doors of the Embassy are always open!
Once again I would like to take this opportunity to thank all readers for their attention to the Embassy's activities.