Miskolc - Economy

Economy

Miskolc is generally thought of as an industrial city, and the largest boost to its economy was indeed provided by the industrialization during the Socialist era; in fact industry (including metallurgy) has a long history in the city.

Miskolc was already an important market town in the Middle Ages, mostly due to its proximity to the main trade routes of the region. In regards of the economy, real development started only after the Ottoman occupation. In the 18th century, the town already had a lumber mill, a paper manufacture, a brewery, a gunpowder factory and fifteen mills on the Szinva stream. The glass works manufactures and iron furnaces appeared in the late 18th and early 19th centuries. The first iron furnace, built by Henrik Fazola around 1770, did not survive, but the second one, built in 1813, can still be visited. Several new settlements were formed in the Bükk mountains to provide dwellings for the workers of glass works manufactures and furnaces. Many of them – including Alsóhámor, Felsőhámor, Ómassa and Bükkszentlászló – are now parts of Miskolc.

Development quickened from the second half of the 19th century, partly because of the political situation (after the Ausgleich) and partly because of the newly constructed railway line. A large furnace (second largest in the country) was built in Diósgyőr, and several other factories were built. The mining industry became more and more important, too. Within forty years the population doubled. The industrialization led to the forming of Greater Miskolc with the unification of Miskolc and Diósgyőr (1945) and several nearby towns and villages (between 1950 and 1981). The unification was only the first step in Miskolc being developed into an industrial centre. Development reached its highest point in the 1980s, when the metal factory had more than 18,000 workers and production was over one million tons per year. The population hit all-time record (over 200,000 inhabitants), ⅔ of the working people worked in heavy industry.

The economical recession after the end of the Socialist era hit the industrial cities of Northern Hungary the hardest. The unemployment rate rose until it became one of the highest in the country, the population of Miskolc dramatically decreased (not only because of unemployment though, but also due to suburbanization which became prevalent nationwide). The economical situation of the city went through a change, smaller enterprises appeared in place of the large state-owned companies.

By the early 2000s the decade of changes was over, and the city went through the recession successfully. International companies and supermarkets appeared in the area. The local government is trying to strengthen the city's role in culture and tourism. By the end of 2004, the highway M3 had reached the city.