The most important economic information
The Świętokrzyskie key indicators show a general mild growth trend. Region’s gross domestic product (GDP) was estimated to be €10,835.37m in 2017 (Eurostat, 2019), showing a slight increase from 2016 and reflecting overall growth in Poland. The regional GDP in 2016 was about 2.3% of the national GDP (Eurostat 2019). Equally, the unemployment rate of the region was 5.8.% in 2018, which meant a further reduction from 7.0% in 2017, but was still clearly lagging behind the national average of 3.9% of that year (Eurostat, 2019). The GDP per capita was 14.900 (PPS) in 2017, way below the national average of 20,900 (PPS) in the same year.
The region’s real growth rate (GVA) in 2016 amounted to 1.1%, a significant reduction from the 2.1% of 2015 (Eurostat, 2019). While, the share of industry in this was close to the national average of 27,4% one of the region’s key economy branches- construction- exceeded the 7,2% average and stood at 8,3%, placing Świętokrzyskie at third place amongst the regions in this regards (Regions of Poland 2019 Report). There was a significant drop in the number of companies registered in the region between mid-2018 and mid-2019, and this negative trend was visible also in case of companies with foreign capital.
Economics in numbers
Economic mechanisms in the region
The region is characterised by the presence of heavy construction and transport companies as well as military equipment manufacturers. Moreover, the Świętokrzyskie is characterised by a tradition in metallurgy, ceramics and masonry. In addition, rich natural resources promote the production of cement and plaster. The Świętokrzyskie is famous for the largest construction companies in Poland, which prepare and implement projects across the country. Another relevant economic factor in the region is the presence of the Special Economic Zone “Starachowice” SA. in Starachowice (Polish Information and Foreign Investment Agency 2017). Agriculture plays also an important role in the regional economy as favourable weather and fertile soil create excellent conditions for agricultural development. In the Świętokrzyskie region the headquarters are seated of large companies such as Kolporter sp. z o.o. (logistics), Celsa Huta Ostrowiec sp. z o.o. (steel manufacturing), Elektrownia Połaniec (energy supply) or NSG (Pilkington) (automotive).
Socio-economic profile:
North Hungary (NH) hosted 11.7% of the total population of Hungary in 2018. The population decreased by 12.2% between 2001 and 2018. NH is also an aging region (with an aging index of 129.5 in 2018 which increased from 89.3 in 2001) (CSO, 2019), but its population decreases more due to out-migration.
Despite the rapid growth in the 2010s, NH is still one of the least developed regions of the European Union: its gross domestic product (GDP) was €9.7bn in 2017, corresponding to a GDP per capita in purchasing power standards (PPS) of 13,700 PPS per inhabitant (Eurostat, 2019), which is the highest in recent years (increase of over 20% since 2008). NH´s GDP per capita in PPS constitutes 67.5% of the national average, and 45.7% of the EU average. Budapest’s (the top-ranking region’s) GDP per capita was 3.1 times higher than that of
The region’s traditional specialisation structure (metallurgy and chemical industry) has changed due to the expansion of foreign investors’ activities. The composition of manufacturing became diversified (automotive industry and electronics) and traditional industries were significantly upgraded. Major multinational corporations (MNCs) with subsidiaries in the region include Bosch, Jabil, ZF, Eurofoam and Prec Cast. Nevertheless, the regional stock of foreign direct investment (FDI) is far below the national average: 5.8% of total in 2017 (CSO, 2019). The activity rate of the population is the second lowest in Hungary (after South Transdanubia), being 59.7% in 2018 (the national average is 62.5%) (CSO, 2019). This is due to a large number of lagging, poorly accessible settlements without any perspectives to catch-up, where unemployment is nearly 100%.
The unemployment in NH has reached its lowest rate, 4.7% in 2018, since 2008 (when it was 13.3%) (Eurostat, 2019). It is still above the national average (3.7%) but below the EU average (6.9% in 2018, Eurostat, 2019). Apart from increasing labour demands, factors such as state intervention (for example the public works scheme), significant emigration to other countries, among others, also contributed to achieving the good unemployment results.
With indicators much below the national and the European average and large internal disparities, this region still has important strengths that can provide opportunities for development. Strengths are related to two factors: 1) the region’s innovation potential (based on the quality of its university and research centres); and 2) the presence of important export-intensive multinational companies.
