Hungary

Click here for more Europe Links and Resources

FITA helps you find
service providers for:

Market Research

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The Hungarian economy slowed down in 2007, because of Prime Minister Ferenc Gyurcsany's austerity program. The country was affected by the financial crisis, a fact which was aggravated by its strong dependence on the European Union markets. In 2008, Hungary was hit head-on by the financial crisis and the country was saved from banckruptcy by the International Monetary Fund which assigned it a euro 20 billion aid and relaunch plan, thus avoiding an unprecedented social crisis and a precipitous drop in value of the national currency, the Forint.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	113.05	138.43	156.28	125.88e	134.59
GDP (constant prices, annual % change)	4.0	1.1	0.6	-3.3e	-0.4
GDP per capita (USD)	11,219	13,752	15,542	12,531e	13,413
General government balance (in % of GDP)	-9.3	-5.0	-3.4e	-	-
Inflation rate (%)	3.9	7.9	6.1	3.8e	2.8
Unemployment rate (% of the labor force)	7.5	8.0	8.0	-	-
Current Account (billions USD)	-8.53	-8.92	-12.24	-4.97	-4.64
Current Account (in % of GDP)	-7.5	-6.4	-7.8e	-3.9e	-3.4e

Source: IMF - World Economic Outlook Database

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 slightly less than 5% of the GDP and employs 5% of the active population. The main crops are Cereal, fruits, vegetables and wine.
The industrial sector contributes to 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.

The global financial crisis had detrimantal effects on Hungarian industries that work on the external market but also on the national market where demand was reduced.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	5.0	32.4	62.6
Value added (in % of GDP)	4.0	29.6	66.4
Value added (annual % change)	-22.6	4.2	1.8

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Hungarian Forint (HUF) - Average annual exchange rate for 1 USD	202.75	199.58	210.39	183.63	172.11

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 66.8/100
Position:: moderately free
World Rank:: 44 out of 179
Regional Rank:: 22 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Strong export growth has been sustained by a shift in the destination market, from European and U.S. markets to fast-growing emerging markets. However, Hungary has underperformed, especially in the value of the exports, as they have continued to declined since 2005. This tendency worsened with the crisis which affected all of Hungary's partners, which further contributed to the country's trade deficit. The European Union is by far Hungary's biggest economic partner. Hungary main exports are machinery and equipment (61,1%). Following the crisis, the year 2009 shows a drop in exports, especially towards Germany.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	46,221	58,695	64,077	75,494	92,277
Exports of goods (millions USD)	42,943	55,689	62,245	74,348	94,247
Imports of services (millions USD)	9,150	10,604	11,466	11,674	15,221
Exports of services (millions USD)	9,211	10,890	12,777	13,295	16,758
Imports of goods and services (annual % change)	9.3	13.4	7.0	14.8	13.1
Exports of goods and services (annual % change)	6.2	15.6	11.3	18.6	15.9
Imports of goods and services (in % of GDP)	64.7	66.4	67.8	77.8	78.7
Exports of goods and services (in % of GDP)	60.8	63.5	66.0	77.1	80.3
Trade Balance (millions USD)	-3,279	-3,006	-1,832	-1,146	1,969
Trade Balance (including service) (millions USD)	-3,217	-2,720	-520	475	3,506
Foreign trade (in % of GDP)	125.5	129.9	133.8	154.8	159.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
Germany	28.4%
Italy	5.6%
France	4.7%
Austria	4.5%
United Kingdom	4.5%
Romania	4.5%
Slovakia	4.2%
Poland	4.2%
Czech Republic	3.8%
Russia	3.1%
Spain	3.1%
Netherlands	2.9%
United States	2.3%
Ukraine	1.9%
Belgium	1.6%
Croatia	1.5%
Turkey	1.5%
Switzerland	1.1%
Sweden	1.1%
Slovenia	1.1%
See more countries	52.3%

Main suppliers (% of imports)	2007
Germany	26.8%
Russia	6.9%
Austria	6.1%
China	5.4%
Italy	4.5%
France	4.4%
Netherlands	4.3%
Poland	4.0%
Czech Republic	3.6%
Slovakia	3.0%
Japan	2.8%
United Kingdom	2.5%
South Korea	2.2%
Romania	2.2%
Belgium	2.0%
Hong Kong	1.8%
United States	1.6%
Spain	1.5%
Sweden	1.4%
Ukraine	1.3%
See more countries	50.3%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	25.4%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	21.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	11.0%
Plastics and articles thereofPlastics and articles thereof	3.6%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	2.8%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.5%
Pharmaceutical productsPharmaceutical products	2.4%
CerealsCereals	1.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.5%
Aluminium and articles thereofAluminium and articles thereof	1.5%
Iron and steelIron and steel	1.4%
Articles of iron or steelArticles of iron or steel	1.4%
Rubber and articles thereofRubber and articles thereof	1.2%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.0%
Organic chemicalsOrganic chemicals	0.9%
Meat and edible meat offalMeat and edible meat offal	0.9%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.8%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.7%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.6%
Glass and glasswareGlass and glassware	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.5%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.3%
Ceramic productsCeramic products	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Miscellaneous chemical productsMiscellaneous chemical products	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Live animalsLive animals	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.1%
FertilizersFertilizers	0.1%
Man-made filamentsMan-made filaments	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
See more products	35.6%

Main imports (% of imports)	2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	24.0%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	16.3%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	9.4%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	8.8%
Plastics and articles thereofPlastics and articles thereof	3.7%
Articles of iron or steelArticles of iron or steel	2.4%
Iron and steelIron and steel	2.3%
Pharmaceutical productsPharmaceutical products	2.3%
Aluminium and articles thereofAluminium and articles thereof	1.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.3%
Rubber and articles thereofRubber and articles thereof	1.3%
Organic chemicalsOrganic chemicals	1.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.9%
Copper and articles thereofCopper and articles thereof	0.8%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.7%
Miscellaneous chemical productsMiscellaneous chemical products	0.7%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Glass and glasswareGlass and glassware	0.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.5%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.5%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.4%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.4%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.4%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.3%
FertilizersFertilizers	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Meat and edible meat offalMeat and edible meat offal	0.3%
Ceramic productsCeramic products	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Man-made filamentsMan-made filaments	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
CottonCotton	0.2%
Live animalsLive animals	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.1%
Sugars and sugar confectionerySugars and sugar confectionery	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
CerealsCereals	0.1%
Man-made staple fibresMan-made staple fibres	0.1%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Ores, slag and ashOres, slag and ash	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
See more products	37.8%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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 ÉrtéktÅzsde / 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

Political outline

Executive Power: Chief of state: Laszlo SOLYOM (since 5 August 2005).
Head of government: Prime Minister Ferenc GYURCSANY (since 29 September 2004).
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; election last held 29 September 2004.
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: Laszlo SOLYOM (since August 2005), non-partisan.
Prime Minister: Gordon BAJNAIY (since April 2009), MSzP, heading a coalition government with partner SzDSz.
Next election dates: Presidential: June 2010
National Assembly: April 2010

Indicator of freedom of the press

World Rank:: 23/173
Evolution:: 6 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Any comments about this content? Report it to us.