Not much is spoken about Hungary’s Economy. We set out to provide an economic snapshot of this economy and the key figures on this economy.
Hungary’s Economic Structure
- Transitioned from Planned to Market Economy
- Remarkable turnaround of budget deficit
- 4% of GDP in 2008 from near 10% in 2006
- Low budget, low growth
- GDP: $138.2 billion
- Real GDP growth rate: 1.3% (2007), 2.3% 2008, 3.4% 2009
- Unemployment: 7.1%
- Inflation: 5.5% (2007 CPI est.)
- Current Account Balance: -7.1% of GDP
- Labor force participation: 57%
- Private sector 80% of GDP, FDI $60 billion since 1989
Hungary’s Demographics
- Median Age
- male: 36.8 years
- female: 41.8 years
- Sex Ratio
- under 15 years: 1.06 male(s)/female
- 15-64 years: 0.97 male(s)/female
- 65 years and over: 0.57 male(s)/female
- Income per Capita: $19,500
- 4.4 million Internet users in a population of 10 million
- Only recent emergence of middle class
Hungary By Sector:
- Industrial Growth
- Mining 28.2%
- Manufacturing 13.8%
- From 1989-2000, 1/3 FDI into East Eur. went to Hungary
- Investment concentrated around Budapest
- Special initiatives for doing business in eastern Hungary
- Agriculture
- Land 1/10 price of Western Europe
- Speculating issue as EU ascension imminent
- Financial Services
- Foreign companies do not need government approval
- May conduct cross-border financial services
- Hungary issues investment-grade sovereign debt