FITA helps you find
service providers for:

Market Research


flag Hungary Hungary: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Hit by the financial crisis head-on, the country had to apply for a loan from the International Monetary Fund. The government had therefore committed itself to carrying out structural reforms aimed at increasing competitiveness and to benefit from the German economic recovery (its main trading parner) in order to bring its budget deficit under 3% in 2011. A series of fiscal measures had also been urgently passed, esentially concerning the energy, telecommunications and food distribution sectors.

The country experienced a growth again in 2010, estimated at 1.2% of the GDP and essentially driven by a rise in consumption, the resumption of exports and of industrial produciton. This trend continued in 2011, with the growth rate of around 1.8%.

However, due to fears of a downgrade of its sovereign debt, because of the fiscal and economic policy conducted by the Hungarian government deemed "unpredictable", in November 2011 the country has once again turned to the IMF, in order to obtain in a credit line in early 2012. The Hungarian authorities have sent a similar request to the European Commission.

The economic crisis has also worsened the employment situation: according to estimations, in 2011 the unemployment rate increased to more than 11%.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 128.76130.42147.87e148.36155.58
GDP (Constant Prices, Annual % Change) -6.71.2e1.8e1.72.9
GDP per Capita (USD) 12,83713,024e14,80814,86115,608
General Government Balance (in % of GDP) -2.9-3.9e-4.8-3.2-2.4
General Government Gross Debt (in % of GDP) 78.480.276.175.575.6
Inflation Rate (%) 4.24.93.7e3.03.0
Unemployment Rate (% of the Labor Force) 10.111.211.311.010.5
Current Account (billions USD) 0.462.702.992.292.03
Current Account (in % of GDP) 0.42.12.01.3-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural sector, which was predominant in the country's economy for many years, now only represents 4.3% of the GDP and employs about 4% of the active population. The main crops are cereals, fruits, vegetables and wine.

The industrial sector contributes to almost one-third of the country’s GDP and is very open to foreign investors. Automobile and electronics sectors are the two main sectors, given that they account for 30% of the country's exports and generate 15% of the GDP.

The services sector contributes nearly to two-thirds of the GDP and employs over 60% of the workforce. It concentrates the bulk of FDI, especially in the fields of telecommunications, retail and finance.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 4.6 31.2 64.2
Value Added (in % of GDP) 4.3 29.4 66.2
Value Added (Annual % Change) 50.6 -0.8 -1.4

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Hungarian Forint (HUF) - Average Annual Exchange Rate For 1 USD 210.39183.63172.11202.34207.94

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Hungary on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
66.6/100
Position:
Moderately free
World Rank:
47/179
Regional Rank:
21/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Return to top

Foreign Trade in Figures

The Hungarian economy is very open, trade representing roughly 160% of the GDP.

The trade balance is traditionally a deficit. However, as an effect of the global recession, the volume of trade has decreased and due to the fall in imports being quicker than the increase in exports, the trade balance became positive.

The European Union is by far Hungary's biggest economic partner (Germany and Russia in the lead), followed by China.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 78,26295,565108,94077,76188,125
Exports of Goods (million USD) 75,25595,400108,50483,00895,484
Imports of Services (million USD) 11,91015,54418,54116,33115,529
Exports of Services (million USD) 13,56717,09120,01818,28518,386
Imports of Goods and Services (Annual % Change) 14.813.44.7--
Exports of Goods and Services (Annual % Change) 18.616.44.8--
Imports of Goods and Services (in % of GDP) 77.979.379.8--
Exports of Goods and Services (in % of GDP) 77.280.981.0--
Trade Balance (million USD) -3,084-175-7924,7826,212
Trade Balance (Including Service) (million USD) -1,5151,2596636,6919,389
Foreign Trade (in % of GDP) 155.2160.1160.9--

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 25.2%
Italy 5.5%
United Kingdom 5.4%
Romania 5.4%
Slovakia 5.2%
See More Countries 53.3%
Main Suppliers
(% of Imports)
2010
Germany 25.5%
Russia 7.8%
China 7.1%
Austria 6.3%
Netherlands 4.3%
See More Countries 49.0%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 10.6%
Television receivers, whether or not incorporating...Television receivers, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors 6.2%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 4.4%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 3.5%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.1%
See More Products 72.3%
Main Imports
(% of Imports)
2010
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 4.5%
Parts suitable for use solely or principally with...Parts suitable for use solely or principally with transmission and reception apparatus for radio-telephony, radio-telegraphy, radio-broadcasting, television, television cameras, still image video cameras and other video camera recorders, radar apparatus, radio navigational aid apparatus or radio remote control apparatus, n.e.s. 4.2%
Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies 4.1%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.4%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 3.4%
See More Products 80.4%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

Return to top

Sources of General Economic Information

Ministries
Ministry of Agriculture and Regional Development
Ministry of Economy
CIA World Factbook
Statistical Office
Hungarian Statistics Office
Central Bank
Magyar Nemzetti Bank
Stock Exchange
Budapesti Értéktőzsde / Budapest Stock Exchange
Search Engines
Sharelook.hu
Google
Dmoz.org
Economic Portals
Napi Gazdaság - only in Hungarian
Heti Világgazdaság - only in Hungarian
Budapest Business Journal - in English
Piac és Profit - only in Hungarian

Return to top

Political Outline

Executive Power
Chief of state: Laszlo SOLYOM (since 5 August 2005).
Head of government: Prime Minister Gordon BAJNAI (since April 2009).
Cabinet: Council of Ministers prime minister elected by the National Assembly on the recommendation of the president; other ministers proposed by the prime minister and appointed and relieved of their duties by the president elections: president elected by the National Assembly for a five-year term (eligible for a second term); election last held 6-7 June 2005 (next to be held by June 2010); Prime minister elected by the National Assembly on the recommendation of the president; last election held in April 2009.
Legislative Power
Unicameral National Assembly or Orszaggyules (386 seats; members are elected by popular vote under a system of proportional and direct representation to serve four-year terms).
Elections: last held 9 and 23 April 2006 (next to be held in April 2010).
Main Political Parties
SZDSZ :Alliance of Free Democrats or SzDSz;
KDNP : Christian Democratic People's Party or KDNP;
FIDESZ :Hungarian Civic Alliance or Fidesz;
MDF : Hungarian Democratic Forum or MDF;
MSZP : Hungarian Socialist Party or MSz.
Current Political Leaders
President: Pál Schmitt (since june 2010) - Fidesz
Prime Minister: Viktor Orbán (since Mai 2010) - Fidesz
Next Election Dates
Presidential: June 2014
National Assembly: April 2014
 

Indicator of Freedom of the Press

World Rank:
23/178
Evolution:
3 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010

 

Return to top

Any Comments About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Last Updates: January 2012