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