Hungary

Capital: Budapest

Local time:
It is %T:%M %A in Budapest

Exchange rate on :

GDP growth rate: 4.5% in 2012

FDI stock: 97 397 million USD in 2007

Country risk: See the country risk analysis from Hungary provided by Ducroire.

Economic trends

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 branches 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.

International trade

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.

Learn more

For more information on Hungary

The Country Profiles of the Foreign and Commonwealth Office

Countries information of the UK Trade and Investment Website

For more international news

Business News of the British Chamber

For more advices

The business advices of the Foreign and Commonwealth Office

Are You Ready to Export? - The online test of the UK Trade and Investment Website