Article by Zsófia Hajnalon the Institute of World Economics’ blog

Complaints on stagnation and recessionary impacts have constantly accompanied recent discussion and debate about Germany’s economy, both in its segments and various industries. More often than not, traditional indicators (which have recently turned out to be even gloomier than previously thought) have reflected these worries. The state of Germany’s economy is decisive of near future trends for several industries in the European Union, with networks such as the automotive and pharmaceutical being in the focus of economic monitoring. Events and decisions within the broader German economic sphere, be they positive or negative in terms on the consequences to bear, ripple through the European value chains, as well as the financial web, with Hungary – through trade and industrial links – being a prime example of the countries impacted.

Whilst the broader geopolitical and technological contexts hold several hypotheses and clues that are more straightforward on the reasons for such economic trends, it might be worth taking a brief look at the accompanying phenomena on the micro-level as well. Traditional indicators remain of primary consideration when it comes to evaluation and prognosis, however, some unconventional indicators in the realm of consumption habits might signal in advance, or confirm economic states and their changes too…

A Three Unorthodox Recession Indicators and Their Applicability to the German Economy bejegyzés először VGI-én jelent meg.

Article by Emese Dobos on the Institute of World Economics’ blog

The USA almost entirely dresses up from import clothing and shoes. Although the US President has envisaged cheaper products for Americans in the wake of the tariff war, the proposed tariffs are likely to negatively affect those who are already vulnerable. So poorer Americans, and those developing countries with significant clothing production will be effected – and a high proportion of US imports…

A The US tariff war and the global garment industry: poorer Americans and developing countries at risk bejegyzés először VGI-én jelent meg.

Article by Magdolna Sass on the Institute of World Economics’ blog

When Donald Trump was campaigning as a candidate for the US presidency, he often claimed that many countries were “taking advantage” of the US by exporting more products to it than they imported from it. Hearing this rhetoric, in my university courses I often pointed out that no one in the Trump team at the time was likely to have given much thought to global value chains. If they had, they would have known that, on a value-added basis, these trade balances are a much more balanced picture. Indeed, in some cases, such as Mexico, there is even a slight US surplus.

However, recent tariff increase announcements suggest that attention is being paid to global value chains after all. It seems that Trump’s advisers now see not only the simple trade balance, but also the outsourcing of production capacity and the offshoring of industrial capacity as the reasons behind the decline of US industry and thus the trade deficit. This industrial decline is a major cause of dissatisfaction among the US electorate, as stressed not only by the Trump team but also by experts more closely associated with the Democratic Party, such as Paul Krugman…

A Trump’s tariffs – a possible explanation and Hungary’s involvement bejegyzés először VGI-én jelent meg.

Article by Andrea Éltető on the Institute of World Economics’ blog

It was recently reported that the Hungarian government is also trying to pave the way for battery recycling plants by amending the law, and the Minister of Economy has been persuading several battery recycling companies in South Korea and China to invest in Hungary. According to a statement from the Ministry of Economy, since the EU’s 2023 regulation makes battery producers responsible for collecting and recycling all battery waste, but the country still has hardly any recycling plants, so this sector needs to be developed “to provide safe and environmentally friendly solutions for the large-scale recycling of used batteries.”

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A The environmental price of battery-recycling plans of the Hungarian government bejegyzés először VGI-én jelent meg.

Article by Magdolna Sass on the Institute of World Economics’ blog

Over the past two decades, China’s share of the world economy’s total FDI stock has grown rapidly. While in 2000 the country’s share was negligible, by 2023 it accounted for nearly 7% of the total stock, according to UNCTAD data. This rapid growth contrasts with the stagnating share of the other BRICs and the slightly or significantly declining share of the leading developed economies (especially the US). Since 2009, China has been the “podium” country in terms of annual outward FDI inflows every year, mostly behind the US and ahead of Japan in the ranking. Nevertheless, there have been years when China has been the largest source of outward FDI in the world economy: for example, in 2014 or 2020. In 2022, China accounted for more than 10% of total annual outward FDI in the world economy, and in 2023 for more than 9.5%. Including Hong Kong, these shares are more than 17% and more than 16% respectively (UNCTAD). (Further growth is likely to continue, as outward FDI in China accounted for 16% of GDP in 2023, compared to an OECD average of 52% and even around 20% for Central and Eastern European countries.)

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A Hungary is the recent European leader in Chinese investment: but who benefits? bejegyzés először VGI-én jelent meg.

Article by Andrea Éltető on the  Institute of World Economics’ blog

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A Not always visible, but plenty – hazardous waste in Hungarian battery factories bejegyzés először VGI-én jelent meg.

A Blog-cikk-en bejegyzés először VGI-én jelent meg.