Portrait of the Regions - HUNGARY - HEVES - Economy

Portrait of the Regions - HUNGARY - HEVES - Economy

HEVES - Economy

Strong secondary sector

The Gross Value Added of Heves was EUR 1.2 billion in 2001. Compared to 1998, this represents a growth by 51,9%, comparable to the growth observed for the GVA at national level but far above the increase registered in the region of Northern Hungary.

The share of the primary sector in GVA is higher in Heves compared to the country as a whole, with respectively 5.9% and 4.3% in 2001. This phenomenon also appeared for the secondary sector, but at a higher degree: this sector accounted for 42.4% of the county?s GVA, while this share was 31.3% nationally.

Thus the tertiary sector has one of the lowest share of the country, with only 51.7% of the Gross Value Added, which is 12.7 percentage points under the figure for Hungary as a whole. Furthermore, this share has been regularly declining over the recent years.

Heavy industry established in the 1950s and 1960s

In addition to the traditional ore mining, building materials production and food processing industries, a significant amount of heavy industry was established in Heves during the first two decades of socialist industrialisation. It was at this time that the Mátra power station was built on the lignite deposits in the region, and a number of engineering factories were established. Light industry provided employment first and foremost for women. The county's profile was thus transformed from agricultural to industrial, a process accompanied by a moderate development in the services sector.

The large scale changes to the structure of the economy experienced in the 1990s resulted in a significant amount of unemployment and the movement of labour between sectors.

Industry is concentrated primarily in the Zagyva Valley (Hatvan), the foothills of the Mátra (Gyöngyös), and in Eger and its district. In the north, Pétervására and its district is a lightly industrialised region as is Heves and its district in the south.

The quality of the agricultural land in Heves is poorer than in other counties, though the fields in the southern and central part of the county are fertile and the production of field crops is supplemented by vegetables, especially tomatoes and watermelons. There are two historic wine regions.

Within commerce there are more sole-trader small retailers than legally incorporated partnerships. Large numbers are employed in education, health care, social services, transport, storage and in post and telecommunications. There has been an increase in the numbers working in financial services and state administration.

Large companies and research

Among the largest companies of the county there are a lot of foreign owned: MÁTRA Power Plant Co. Ltd. (Germany), EGER Tobacco Co. Ltd. (owned by Philip Morris), LEONI Hungary Ltd. - metal processing, ZF Hungária Ltd. (Germany) - spare parts for automobiles, EGUT Egri Útépíto Ltd. (Austria) - road construction, MÁTRACUKOR Ltd. (France) - sugar industry, BÉCEM Cement-and Lime Industry Co. Ltd. (Germany) - cement industry, OMYA EGER Lime-processing Ltd. (Austria) - building and building material manufacture, SCHÖN-KAEV-EGER Kft. (Germany) - machine industry.

University of Agricultural Sciences plays an important role in the research and technical development with its agrotechnical, technological, soil-amelioration and environmental protection projects. Significant results are achieved in the improvement of lucerne and autumn barley. Eszterházi Károly Teachers' Training College has research projects on natural and social sciences. Technical development activity of enterprises have diminished for the last decade, only a small part deals with product development what can increase their market- and price-competitiveness.

Economically important industrial sector

The county's industry is centred around Hatvan, Gyöngyös and Eger. Less industry was planted around Pétervására in the north and Heves in the south, which are potential areas for further development. Besides industrial sectors already mentioned have outstanding importance the production of electricity (MÁTRA Power Plant Co. Ltd.), metal-processing, manufacture of machinery, in the frame of light industry the manufacture of wearing apparel and furniture.

New motorway link planned

The county's share in the national highway network is higher compared to its share in the country's land area, with respectively 13.4% and only 3.9%. There were 91 500 registered vehicles in the region in 2002.

There are 283 kilometres of railway lines in the county, of which 47% (a relatively high share compared to the national average of 34%) were electrified. The most important railway is the section of the double track line crossing the county which connects Miskolc and Budapest. The upgrading of the Eger-Füzesabony secondary line has made it possible to establish an express service between the county capital and Budapest.

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Text finalised in March 2004