Hungary - Economic Indicators
Global Outlook: Candles in the Wind
Feb 06, 2023
View the Moody's Analytics Global Forecast. The global economy will slow in 2023, but recession odds have receded slightly. China’s reopening, a mild European winter, and a resilient U.S. labour market are reasons for optimism. The assumption that the global wave of monetary policy tightening being near its end is predicated on inflation continuing to cool over 2023; risks of reaccelerating inflation are nontrivial. The global economy will...
| GDP | Reference | Last | Previous | Units | Frequency |
|---|---|---|---|---|---|
| Real Private Consumption | 2019 Q4 | 4,347,125 | 4,287,029 | Mil. 2005 HUF, CDASA | Quarterly |
| Private Consumption | 2019 Q4 | 7,396,042 | 6,667,658 | Mil. HUF, NSA | Quarterly |
| Government Consumption | 2019 Q4 | 1,334,542 | 1,107,058 | Mil. HUF, NSA | Quarterly |
| Real Gross Domestic Product | 2019 Q4 | 7,382,238 | 7,311,132 | Mil. 2005 HUF, CDASA | Quarterly |
| Real Government Consumption | 2019 Q4 | 797,533 | 788,208 | Mil. 2005 HUF, CDASA | Quarterly |
| Investment | 2019 Q4 | 4,023,141 | 3,876,897 | Mil. HUF, NSA | Quarterly |
| Nominal Fixed Investment (gross fixed capital formation) | 2019 Q4 | 3,774,844 | 3,937,331 | Mil. HUF, NSA | Quarterly |
| Real Fixed Investment (gross fixed capital formation) | 2019 Q4 | 2,135,628 | 2,129,183 | Mil. 2005 HUF, CDASA | Quarterly |
| Nominal Gross Domestic Product | 2019 Q4 | 12,961,367 | 12,043,125 | Mil. HUF, NSA | Quarterly |
| Real Investment | 2019 Q4 | 1,721,583 | 1,697,535 | Mil. 2005 HUF, CDASA | Quarterly |
| Price | Reference | Last | Previous | Units | Frequency |
| Consumer Price Index (CPI) | Dec 2022 | 222.78 | 218.62 | Index 2005=100, NSA | Monthly |
| Producer Price Index (PPI) | Dec 2022 | 134.9 | 137 | Corresponding period of previous year=100, NSA | Monthly |
| Labor | Reference | Last | Previous | Units | Frequency |
| Unemployment Rate | Dec 2022 | 3.86 | 3.75 | % 3-mo ending MA, NSA | Monthly |
| Labor Force Employment | Dec 2022 | 4,702 | 4,713 | Ths. # 3-mo ending MA, NSA | Monthly |
| Labor Force | Dec 2022 | 4,891 | 4,897 | Ths. # 3-mo ending MA, NSA | Monthly |
| Primary Industries Employment | 2022 Q3 | 204.1 | 200.4 | Ths. #, NSA | Quarterly |
| Total Employment | 2022 Q3 | 4,712 | 4,693 | Ths. #, NSA | Quarterly |
| Unemployment | Dec 2020 | 196.5 | 203.76 | Ths. # 3-mo ending MA, NSA | Monthly |
| Agriculture Employment | 2017 | 231,945 | 236,179 | # | Annual |
| Trade | Reference | Last | Previous | Units | Frequency |
| Current Account Balance | 2022 Q3 | -4,468 | -2,645 | Mil. EUR, NSA | Quarterly |
| Real Exports of Goods and Services | 2019 Q4 | 8,134,893 | 8,259,447 | Mil. 2005 HUF, CDASA | Quarterly |
| Real Net Exports | 2019 Q4 | 481,146 | 495,817 | Mil. 2005 HUF, CDASA | Quarterly |
| Real Imports of Goods and Services | 2019 Q4 | 7,653,747 | 7,763,630 | Mil. 2005 HUF, CDASA | Quarterly |
| Exports of Goods and Services | 2019 Q4 | 9,871,738 | 9,989,288 | Mil. HUF, NSA | Quarterly |
| Imports of Goods and Services | 2019 Q4 | 9,664,096 | 9,597,776 | Mil. HUF, NSA | Quarterly |
| Net Exports | 2019 Q4 | 207,642 | 391,512 | Mil. HUF, NSA | Quarterly |
| Balance of Goods | 2017 | 2,561,339,227 | 5,127,332,729 | BoP; current USD | Annual |
| Exports of Goods | 2017 | 98,740,986,635 | 88,625,443,711 | USD | Annual |
| Imports of Goods | 2017 | 96,179,647,408 | 83,498,110,981 | USD | Annual |
| Government | Reference | Last | Previous | Units | Frequency |
| Outstanding Public Debt | 2022 Q3 | 48,393,644 | 46,815,255 | Mil. National Curr., NSA | Quarterly |
| Gross External Debt | 2022 Q3 | 0 | 0 | USD, NSA | Quarterly |
| Markets | Reference | Last | Previous | Units | Frequency |
| Lending Rate | 08 Feb 2023 | 13 | 13 | Percent, NSA | Daily |
| Stock Market Index | 07 Feb 2023 | 45,217 | 44,793 | Index Jan 2 1991=1000, NSA | Business Daily |
| Average Long-term Government Bond | Dec 2022 | 8.63 | 8.81 | % p.a., NSA | Monthly |
| Treasury Bills (over 31 days) | Dec 2022 | 13.6 | 13.01 | % p.a., NSA | Monthly |
| Money Market Rate | Dec 2022 | 17.64 | 17.55 | %, NSA | Monthly |
| Real Estate | Reference | Last | Previous | Units | Frequency |
| Residential Building Permits | Nov 2022 | 926 | 967 | #, NSA | Monthly |
| Non-residential Building Permits | Nov 2022 | 408 | 381 | #, NSA | Monthly |
| House Price Index | 2022 Q3 | 535.05 | 518.1 | Index 2001Q1=100, NSA | Quarterly |
| House Price Index for Existing Homes | 2022 Q3 | 175.3 | 201.5 | Index 2015=100, NSA | Quarterly |
| House Price Index for New Homes | 2022 Q3 | 240.2 | 267.7 | Index 2015=100, NSA | Quarterly |
| House Price Value for Existing Homes | 2021 | 21.2 | 18.6 | Mil. HUF | Annual |
| House Price Value for New Homes | 2021 | 41.1 | 26.8 | Mil. HUF | Annual |
| Consumer | Reference | Last | Previous | Units | Frequency |
| Consumer Confidence | Jan 2023 | -44.7 | -45.6 | SA | Monthly |
| Retail Sales | Dec 2022 | 1,764,892 | 1,541,184 | Mil. HUF, NSA | Monthly |
| Real Retail Sales | Dec 2017 | 125.2 | 125.1 | Index 2010=100, WDASA | Monthly |
| Business | Reference | Last | Previous | Units | Frequency |
| Capacity Utilization | 2023 Q1 | 78.7 | 75 | %, SA | Quarterly |
| Business Confidence | Jan 2023 | -4.9 | -4 | SA | Monthly |
| Industrial Production | Nov 2022 | 122.3 | 123.2 | Index 2015=100, CDASA | Monthly |
| Real Change in Inventories | 2019 Q4 | 337,251 | 83,708 | Mil. Ch. HUF, NSA | Quarterly |
| Change in Inventories | 2019 Q4 | 229,086 | -77,445 | Mil. HUF, NSA | Quarterly |
| Demographics | Reference | Last | Previous | Units | Frequency |
| Births | Dec 2022 | 7,366 | 7,300 | # | Monthly |
| Deaths | Dec 2022 | 11,940 | 10,974 | # | Monthly |
| Population | 2022 | 9,689 | 9,730 | Ths., NSA | Annual |
| Birth Rate | 2012 | 9.1 | 8.8 | # per Ths. pop. | Annual |
| Net Migration | 2012 | 29,999 | # | Annual | |
| Death Rate | 2011 | 12.9 | # per Ths. pop. | Annual |
Factbook
Background
Background:
Hungary became a Christian kingdom in A.D. 1000 and for many centuries served as a bulwark against Ottoman Turkish expansion in Europe. The kingdom eventually became part of the polyglot Austro-Hungarian Empire, which collapsed during World War I. The country fell under communist rule following World War II. In 1956, a revolt and an announced withdrawal from the Warsaw Pact were met with a massive military intervention by Moscow. Under the leadership of Janos KADAR in 1968, Hungary began liberalizing its economy, introducing so-called "Goulash Communism." Hungary held its first multiparty elections in 1990 and initiated a free market economy. It joined NATO in 1999 and the EU five years later.
Geography
Location:
Central Europe, northwest of Romania
Geographic coordinates:
47 00 N, 20 00 E
Map references:
Europe
Area:
total: 93,028 sq km
land: 89,608 sq km
water: 3,420 sq km
country comparison to the world: 111
Area - comparative:
slightly smaller than Virginia; about the same size as Indiana
Area comparison map:
Land boundaries:
total: 2,106 km
border countries (7): Austria 321 km, Croatia 348 km, Romania 424 km, Serbia 164 km, Slovakia 627 km, Slovenia 94 km, Ukraine 128 km
Coastline:
0 km (landlocked)
Maritime claims:
none (landlocked)
Climate:
temperate; cold, cloudy, humid winters; warm summers
Terrain:
mostly flat to rolling plains; hills and low mountains on the Slovakian border
Elevation:
mean elevation: 143 m
elevation extremes: lowest point: Tisza River 78 m
highest point: Kekes 1,014 m
Natural resources:
bauxite, coal, natural gas, fertile soils, arable land
Land use:
agricultural land: 58.9%
arable land 48.5%; permanent crops 2%; permanent pasture 8.4%
forest: 22.5%
other: 18.6% (2011 est.)
Irrigated land:
1,721 sq km (2012)
Population - distribution:
a fairly even distribution throughout most of the country, with urban areas attracting larger and denser populations
Environment - current issues:
air and water pollution are some of Hungary's most serious environmental problems; water quality in the Hungarian part of the Danube has improved but is still plagued by pollutants from industry and large-scale agriculture; soil pollution
Environment - international agreements:
party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Wetlands, Whaling
signed, but not ratified: none of the selected agreements
Geography - note:
landlocked; strategic location astride main land routes between Western Europe and Balkan Peninsula as well as between Ukraine and Mediterranean basin; the north-south flowing Duna (Danube) and Tisza Rivers divide the country into three large regions
People & Society
Population:
9,850,845 (July 2017 est.)
country comparison to the world: 92
Nationality:
noun: Hungarian(s)
adjective: Hungarian
Ethnic groups:
Hungarian 85.6%, Romani 3.2%, German 1.9%, other 2.6%, unspecified 14.1% (2011 est.)
note: percentages add up to more than 100% because respondents were able to identify more than one ethnic group; Romani populations are usually underestimated in official statistics and may represent 5–10% of Hungary's population
Languages:
Hungarian (official) 99.6%, English 16%, German 11.2%, Russian 1.6%, Romanian 1.3%, French 1.2%, other 4.2%
note: shares sum to more than 100% because some respondents gave more than one answer on the census; Hungarian is the mother tongue of 98.9% of Hungarian speakers (2011 est.)
Religions:
Roman Catholic 37.2%, Calvinist 11.6%, Lutheran 2.2%, Greek Catholic 1.8%, other 1.9%, none 18.2%, unspecified 27.2% (2011 est.)
Age structure:
0-14 years: 14.71% (male 746,043/female 702,792)
15-24 years: 10.96% (male 557,655/female 522,324)
25-54 years: 41.88% (male 2,075,101/female 2,050,478)
55-64 years: 13.4% (male 608,734/female 711,602)
65 years and over: 19.05% (male 708,214/female 1,167,902) (2017 est.)
population pyramid:
Dependency ratios:
total dependency ratio: 46.9
youth dependency ratio: 21.2
elderly dependency ratio: 25.7
potential support ratio: 3.9 (2015 est.)
Median age:
total: 42.3 years
male: 40.4 years
female: 44.3 years (2017 est.)
country comparison to the world: 28
Population growth rate:
-0.25% (2017 est.)
country comparison to the world: 214
Birth rate:
9 births/1,000 population (2017 est.)
country comparison to the world: 205
Death rate:
12.8 deaths/1,000 population (2017 est.)
country comparison to the world: 16
Net migration rate:
1.3 migrant(s)/1,000 population (2017 est.)
country comparison to the world: 54
Population distribution:
a fairly even distribution throughout most of the country, with urban areas attracting larger and denser populations
Urbanization:
urban population: 72.1% of total population (2017)
rate of urbanization: 0.36% annual rate of change (2015-20 est.)
Major urban areas - population:
BUDAPEST (capital) 1.714 million (2015)
Sex ratio:
at birth: 1.06 male(s)/female
0-14 years: 1.06 male(s)/female
15-24 years: 1.07 male(s)/female
25-54 years: 1.01 male(s)/female
55-64 years: 0.85 male(s)/female
65 years and over: 0.6 male(s)/female
total population: 0.91 male(s)/female (2017 est.)
Mother's mean age at first birth:
28.3 years (2014 est.)
Maternal mortality ratio:
17 deaths/100,000 live births (2015 est.)
country comparison to the world: 131
Infant mortality rate:
total: 4.9 deaths/1,000 live births
male: 5.2 deaths/1,000 live births
female: 4.6 deaths/1,000 live births (2017 est.)
country comparison to the world: 177
Life expectancy at birth:
total population: 76.1 years
male: 72.4 years
female: 80 years (2017 est.)
country comparison to the world: 91
Total fertility rate:
1.45 children born/woman (2017 est.)
country comparison to the world: 204
Health expenditures:
7.4% of GDP (2014)
country comparison to the world: 69
Physicians density:
3.09 physicians/1,000 population (2015)
Hospital bed density:
7 beds/1,000 population (2013)
Drinking water source:
improved:
urban: 100% of population
rural: 100% of population
total: 100% of population
unimproved:
urban: 0% of population
rural: 0% of population
total: 0% of population (2015 est.)
Sanitation facility access:
improved:
urban: 97.8% of population
rural: 98.6% of population
total: 98% of population
unimproved:
urban: 2.2% of population
rural: 1.4% of population
total: 2% of population (2015 est.)
HIV/AIDS - adult prevalence rate:
NA
HIV/AIDS - people living with HIV/AIDS:
NA
HIV/AIDS - deaths:
NA
Major infectious diseases:
degree of risk: intermediate
vectorborne diseases: tickborne encephalitis (2016)
Obesity - adult prevalence rate:
26.4% (2016)
country comparison to the world: 42
Education expenditures:
4.6% of GDP (2014)
country comparison to the world: 81
Literacy:
definition: age 15 and over can read and write
total population: 99.1%
male: 99.1%
female: 99% (2015 est.)
School life expectancy (primary to tertiary education):
total: 15 years
male: 15 years
female: 16 years (2015)
Unemployment, youth ages 15-24:
total: 17.3%
male: 18.3%
female: 16% (2015 est.)
country comparison to the world: 76
Government
Country name:
conventional long form: none
conventional short form: Hungary
local long form: none
local short form: Magyarorszag
etymology: the Byzantine Greeks refered to the tribes that arrived on the steppes of Eastern Europe in the 9th century as the "Oungroi," a name that was later Latinized to "Ungri" and which became "Hungari"; the name originally meant an "[alliance of] ten tribes"; the Hungarian name "Magyarorszag" means "Country of the Magyars"; the term may derive from the most prominent of the Hungarian tribes, the Megyer
Government type:
parliamentary republic
Capital:
name: Budapest
geographic coordinates: 47 30 N, 19 05 E
time difference: UTC+1 (6 hours ahead of Washington, DC, during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions:
19 counties (megyek, singular - megye), 23 cities with county rights (megyei jogu varosok, singular - megyei jogu varos), and 1 capital city (fovaros)
counties: Bacs-Kiskun, Baranya, Bekes, Borsod-Abauj-Zemplen, Csongrad, Fejer, Gyor-Moson-Sopron, Hajdu-Bihar, Heves, Jasz-Nagykun-Szolnok, Komarom-Esztergom, Nograd, Pest, Somogy, Szabolcs-Szatmar-Bereg, Tolna, Vas, Veszprem, Zala
cities with county rights: Bekescsaba, Debrecen, Dunaujvaros, Eger, Erd, Gyor, Hodmezovasarhely, Kaposvar, Kecskemet, Miskolc, Nagykanizsa, Nyiregyhaza, Pecs, Salgotarjan, Sopron, Szeged, Szekesfehervar, Szekszard, Szolnok, Szombathely, Tatabanya, Veszprem, Zalaegerszeg
capital city: Budapest
Independence:
16 November 1918 (republic proclaimed); notable earlier dates: 25 December 1000 (crowning of King STEPHEN I, traditional founding date); 30 March 1867 (Austro-Hungarian dual monarchy established)
National holiday:
Saint Stephen's Day, 20 August (1083); note - commemorates his cannonization and the transfer of his remains to Buda (now Budapest) in 1083
Constitution:
history: previous 1949 (heavily amended in 1989 following the collapse of communism); latest approved 18 April 2011, signed 25 April 2011, effective 1 January 2012
amendments: proposed by the president of the republic, by the government, by parliamentary committee, or by Parliament members; passage requires two-thirds majority vote of Parliament members and approval by the president; amended several times, last in 2016 (2017)
Legal system:
civil legal system influenced by the German model
International law organization participation:
accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction
Citizenship:
citizenship by birth: no
citizenship by descent only: at least one parent must be a citizen of Hungary
dual citizenship recognized: yes
residency requirement for naturalization: 8 years
Suffrage:
18 years of age, 16 if married and marriage registered in Hungary; universal
Executive branch:
chief of state: Janos ADER (since 10 May 2012)
head of government: Prime Minister Viktor ORBAN (since 29 May 2010)
cabinet: Cabinet of Ministers proposed by the prime minister and appointed by the president
elections/appointments: president indirectly elected by the National Assembly with two-thirds majority vote in first round or simple majority vote in second round for a 5-year term (eligible for a second term); election last held on 13 March 2017 (next to be held spring 2022); prime minister elected by the National Assembly on the recommendation of the president; election last held on 10 May 2018 (next to be held by spring 2022)
election results: Janos ADER (Fidesz) reelected president; National Assembly vote - 131 to 39; Viktor ORBAN (Fidesz) reelected prime minister; National Assembly vote - 134 to 28
Legislative branch:
description: unicameral National Assembly or Orszaggyules (199 seats; 106 members directly elected in single-member constituencies by simple majority vote and 93 members directly elected in a single nationwide constituency by party list proportional representation vote; members serve 4-year terms)
elections: last held on 8 April 2018 (next to be held on April 2022)
election results: percent of vote by party - Fidesz-KDNP 49.3%, Jobbik 19.1%, MSZP-PM 11.9%, LMP 7.1%, DK 5.4%, E14 0.7%, LdU 0.5%; seats by party - Fidesz-KDNP 133, Jobbik 26, MSZP-PM 20, LMP 8, DK 9, E14 1, LdU 1, independent 1
Judicial branch:
highest court(s): Curia or Supreme Judicial Court (consists of the president, vice president, department heads, and approximately 91 judges and is organized into civil, criminal, and administrative-labor departments; Constitutional Court (consists of 15 judges including the court president and vice president)
judge selection and term of office: Curia president elected by the National Assembly on the recommendation of the president of the republic; other Curia judges appointed by the president upon the recommendation of the National Judicial Council, a separate 15-member administrative body; judge tenure based on interim evaluations until normal retirement age; Constitutional Court judges, including the president of the court elected by the National Assembly; court vice president elected by the court itself; members serve 12-year terms with mandatory retirement at age 70
subordinate courts: 5 regional courts of appeal; 19 regional or county courts (including Budapest Metropolitan Court); 20 administrative-labor courts; 111 district or local courts
Political parties and leaders:
Christian Democratic People's Party or KDNP [Zsolt SEMJEN]
Democratic Coalition or DK [Ferenc GYURCSANY]
Dialogue for Hungary or PM [Gergely KARACSONY, Timea SZABO]
Fidesz-Hungarian Civic Alliance or Fidesz [Viktor ORBAN]
Hungarian Liberal Party or MLP [Gabor FODOR]
Hungarian Socialist Party or MSZP [Gyula MOLNAR]
Movement for a Better Hungary or Jobbik [Janos VOLNER]
National Self-Government of Germans in Hungary or LdU [Otto HEINEK]
Politics Can Be Different or LMP [Akos HADHAZI, Bernadett SZEL]
Together 2014 or Egyutt or E14 [Peter JUHASZ]
Momentum (Momentum Mozgalom) [Andras FEKETE-GYOR]
Political pressure groups and leaders:
Civil Osszefogas Forum ("Civil Unity Forum," nominally independent organization that serves as the steering committee for the pro-government mass organization Bekemenet (Peace March), supporting ORBAN government's policies; increasingly inactive in Orban’s second consecutive term from 2014)
Hungarian Civil Liberties Union (Tarsasag a Szabadsagjogokert) or TASZ (freedom of expression, information privacy)
Hungarian Helsinki Committee (asylum seekers' rights, human rights in law enforcement and the judicial system)
MigSzol (Migrant Solidarity Group of Hungary) (independent advocacy group on migration crisis)
MostMi ("Now Us") [Bori TAKACS](Facebook group that was a major participant at anti-government demonstrations in late 2014-early 2015; pro-Europe, anti-establishment movement that blames Fidesz for the state of the country but also blames all established political parties for perceived political and economic failures since the fall of communism)
Okotars (empowerment of civil society in Hungary)
other: Energy Club (Energia Klub)
Greenpeace Hungary (Greenpeace Magyarorszag)
International organization participation:
Australia Group, BIS, CD, CE, CEI, CERN, EAPC, EBRD, ECB, EIB, ESA (cooperating state), EU, FAO, G-9, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, NATO, NEA, NSG, OAS (observer), OECD, OIF (observer), OPCW, OSCE, PCA, Schengen Convention, SELEC, UN, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, UNIFIL, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO, ZC
Diplomatic representation in the US:
chief of mission: Ambassador Laszlo SZABO (since 8 September 2017)
chancery: 3910 Shoemaker Street NW, Washington, DC 20008
telephone: [1] (202) 362-6730
FAX: [1] (202) 966-8135
consulate(s) general: Los Angeles, New York
consulate(s): Boston
Diplomatic representation from the US:
chief of mission: Ambassador (vacant); Charge d’Affaires David KOSTELANCIK (since 20 January 2017)
embassy: Szabadsag ter 12, H-1054 Budapest
mailing address: pouch: American Embassy Budapest, 5270 Budapest Place, US Department of State, Washington, DC 20521-5270
telephone: [36] (1) 475-4400
FAX: [36] (1) 475-4248
Flag description:
three equal horizontal bands of red (top), white, and green; the flag dates to the national movement of the 18th and 19th centuries, and fuses the medieval colors of the Hungarian coat of arms with the revolutionary tricolor form of the French flag; folklore attributes virtues to the colors: red for strength, white for faithfulness, and green for hope; alternatively, the red is seen as being for the blood spilled in defense of the land, white for freedom, and green for the pasturelands that make up so much of the country
National symbol(s):
Holy Crown of Hungary (Crown of Saint Stephen); national colors: red, white, green
National anthem:
name: "Himnusz" (Hymn)
lyrics/music: Ferenc KOLCSEY/Ferenc ERKEL
note: adopted 1844
Economy
Economy - overview:
Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income approximately two-thirds of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth.
The economy is largely driven by exports, making it vulnerable to external market shocks. Following the fall of communism in 1990, Hungary experienced a drop-off in exports and financial assistance from the former Soviet Union. Hungary embarked on a series of economic reforms, including privatization of state-owned enterprises and reduction of social spending programs, to shift from a centrally planned to a market-driven economy, and to reorient its economy towards trade with the West. These efforts helped to spur growth, attract investment, and reduce Hungary’s debt burden and fiscal deficits. However, living conditions for the average Hungarian initially deteriorated as inflation increased and unemployment reached double digits. Conditions slowly improved over the 1990s as the reforms came to fruition and export growth accelerated. Economic policies instituted during that decade helped position Hungary to join the European Union in 2004; Hungary has yet to join the euro-zone, however. Hungary suffered a historic economic contraction as a result of the global economic slowdown in 2008-09 as export demand and domestic consumption dropped, prompting it to take an IMF-EU financial assistance package.
Since 2010, the government has backpedaled on reforms and taken a more nationalist and populist approach towards economic management. The government has favored national industries, and specifically government-linked businesses, through legislation, regulation, and public procurements. In 2010 and 2012, the government increased taxes on foreign-dominated sectors, such as banking and retail, because the move helped to raise revenues and decrease the budget deficit, thereby allowing Hungary to maintain access to EU development funds. The policy deterred private investment, however. In 2011 and 2014, Hungary nationalized private pension funds. The move squeezed financial service providers out of the system, but it also helped Hungary curb its public debt and lower its budget deficit to below 3% of GDP, as subsequent pension contributions have been channeled into the state-managed pension fund. Hungary’s public debt (at 73.9% of GDP) is still high compared to EU peers in Central Europe. Despite these reversals, real GDP growth has remained robust in the past several years because EU funding increased, EU demand for Hungarian exports rose, and domestic household consumption rebounded. To further boost household consumption ahead of an anticipated 2018 election, the government has announced plans to increase the minimum wage and public sector salaries, decrease taxes on foodstuffs and services, cut the personal income tax from 16% to 15%, and introduce a uniform 9% business tax for small and medium-sized enterprises and large companies. Real GDP growth slowed in 2016 due to a cyclical decrease in EU funding, but increased to 3.8% in 2017, in part as Budapest front-loaded drawdowns of EU funds ahead of the planned 2018 election.
Systemic economic challenges include pervasive corruption, long-term and youth unemployment, skilled labor shortages, widespread poverty in rural areas, vulnerabilities to changes in demand for exports, and a heavy reliance on Russian energy imports.
GDP (purchasing power parity):
$283.6 billion (2017 est.)
$274.8 billion (2016 est.)
$269.5 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 61
GDP (official exchange rate):
$132 billion (2017 est.)
GDP - real growth rate:
3.2% (2017 est.)
2% (2016 est.)
3.1% (2015 est.)
country comparison to the world: 106
GDP - per capita (PPP):
$28,900 (2017 est.)
$28,000 (2016 est.)
$27,300 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 69
Gross national saving:
24.4% of GDP (2017 est.)
24.5% of GDP (2016 est.)
25.1% of GDP (2015 est.)
country comparison to the world: 57
GDP - composition, by end use:
household consumption: 52.3%
government consumption: 19.9%
investment in fixed capital: 19%
investment in inventories: -1.2%
exports of goods and services: 94.1%
imports of goods and services: -84.1% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 4.4%
industry: 30.9%
services: 64.7% (2017 est.)
Agriculture - products:
wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products
Industries:
mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles
Industrial production growth rate:
5.5% (2017 est.)
country comparison to the world: 37
Labor force:
4.599 million (2017 est.)
country comparison to the world: 88
Labor force - by occupation:
agriculture: 4.9%
industry: 30.3%
services: 64.5% (2015 est.)
Unemployment rate:
4.4% (2017 est.)
5.1% (2016 est.)
country comparison to the world: 63
Population below poverty line:
14.9% (2015 est.)
Household income or consumption by percentage share:
lowest 10%: 3.3%
highest 10%: 22.4% (2015 est.)
Distribution of family income - Gini index:
28.2 (2015 est.)
28.6 (2014 est.)
country comparison to the world: 138
Budget:
revenues: $63.63 billion
expenditures: $66.96 billion (2017 est.)
Taxes and other revenues:
48.2% of GDP (2017 est.)
country comparison to the world: 19
Budget surplus (+) or deficit (-):
-2.5% of GDP
note: Hungary has been under the EU Excessive Deficit Procedure since it joined the EU in 2004; in March 2012 the EU elevated its Excessive Deficit Procedure against Hungary and proposed freezing 30% of the country's Cohesion Funds because 2011 deficit reductions were not achieved in a sustainable manner; in June 2012, the EU lifted the freeze, recognizing that steps had been taken to reduce the deficit; the Hungarian deficit increased above 3% both in 2013 and in 2014 due to sluggish growth and the government's fiscal tightening (2017 est.)
country comparison to the world: 100
Public debt:
73.9% of GDP (2017 est.)
74.1% of GDP (2016 est.)
note: general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year in the following categories of government liabilities: currency and deposits, securities other than shares excluding financial derivatives, and government, state government, local government, and social security funds.
country comparison to the world: 48
Fiscal year:
calendar year
Inflation rate (consumer prices):
2.5% (2017 est.)
0.4% (2016 est.)
country comparison to the world: 115
Central bank discount rate:
0.9% (31 December 2017 est.)
1.35% (31 December 2016 est.)
country comparison to the world: 130
Commercial bank prime lending rate:
1.6% (31 December 2017 est.)
2.09% (31 December 2016 est.)
country comparison to the world: 182
Stock of narrow money:
$68.36 billion (31 December 2017 est.)
$55.64 billion (31 December 2016 est.)
country comparison to the world: 47
Stock of broad money:
$80.77 billion (31 December 2017 est.)
$69.25 billion (31 December 2016 est.)
country comparison to the world: 59
Stock of domestic credit:
$77.36 billion (31 December 2017 est.)
$70.11 billion (31 December 2016 est.)
country comparison to the world: 60
Market value of publicly traded shares:
$21.59 billion (31 December 2017 est.)
$17.69 billion (31 December 2016 est.)
$14.51 billion (31 December 2015 est.)
country comparison to the world: 64
Current account balance:
$6.339 billion (2017 est.)
$6.797 billion (2016 est.)
country comparison to the world: 26
Exports:
$98.72 billion (2017 est.)
$91.6 billion (2016 est.)
country comparison to the world: 37
Exports - commodities:
machinery and equipment 53.4%, other manufactures 31.2%, food products 8.4%, raw materials 3.4%, fuels and electricity 3.9% (2012 est.)
Exports - partners:
Germany 28.2%, Romania 5.2%, Slovakia 5%, Austria 4.9%, France 4.8%, Italy 4.8%, Czech Republic 4.2%, Poland 4.2% (2016)
Imports:
$93.28 billion (2017 est.)
$85.78 billion (2016 est.)
country comparison to the world: 36
Imports - commodities:
machinery and equipment 45.4%, other manufactures 34.3%, fuels and electricity 12.6%, food products 5.3%, raw materials 2.5% (2012)
Imports - partners:
Germany 26.3%, Austria 6.4%, China 6.3%, Poland 5.5%, Slovakia 5.3%, Netherlands 4.9%, Czech Republic 4.9%, France 4.8%, Italy 4.8% (2016)
Reserves of foreign exchange and gold:
$27.02 billion (31 December 2017 est.)
$25.82 billion (31 December 2016 est.)
country comparison to the world: 53
Debt - external:
$131.8 billion (31 December 2017 est.)
$131.3 billion (31 December 2016 est.)
country comparison to the world: 45
Stock of direct foreign investment - at home:
$302.9 billion (31 December 2017 est.)
$298.2 billion (31 December 2016 est.)
country comparison to the world: 22
Stock of direct foreign investment - abroad:
$225.3 billion (31 December 2017 est.)
$222.6 billion (31 December 2016 est.)
country comparison to the world: 25
Exchange rates:
forints (HUF) per US dollar -
279.5 (2017 est.)
281.52 (2016 est.)
281.52 (2015 est.)
279.33 (2014 est.)
232.6 (2013 est.)
Energy
Electricity access:
electrification - total population: 100% (2016)
Electricity - production:
28.67 billion kWh (2015 est.)
country comparison to the world: 66
Electricity - consumption:
38.66 billion kWh (2015 est.)
country comparison to the world: 58
Electricity - exports:
5.24 billion kWh (2016 est.)
country comparison to the world: 35
Electricity - imports:
17.95 billion kWh (2016 est.)
country comparison to the world: 13
Electricity - installed generating capacity:
8.468 million kW (2015 est.)
country comparison to the world: 68
Electricity - from fossil fuels:
64.5% of total installed capacity (2015 est.)
country comparison to the world: 115
Electricity - from nuclear fuels:
22.3% of total installed capacity (2015 est.)
country comparison to the world: 7
Electricity - from hydroelectric plants:
0.7% of total installed capacity (2015 est.)
country comparison to the world: 148
Electricity - from other renewable sources:
14.1% of total installed capacity (2015 est.)
country comparison to the world: 52
Crude oil - production:
13,830 bbl/day (2016 est.)
country comparison to the world: 77
Crude oil - exports:
1,042 bbl/day (2016 est.)
country comparison to the world: 72
Crude oil - imports:
120,400 bbl/day (2016 est.)
country comparison to the world: 40
Crude oil - proved reserves:
25.1 million bbl (1 January 2017 est.)
country comparison to the world: 85
Refined petroleum products - production:
156,100 bbl/day (2016 est.)
country comparison to the world: 58
Refined petroleum products - consumption:
157,200 bbl/day (2016 est.)
country comparison to the world: 67
Refined petroleum products - exports:
50,510 bbl/day (2016 est.)
country comparison to the world: 53
Refined petroleum products - imports:
67,860 bbl/day (2016 est.)
country comparison to the world: 70
Natural gas - production:
1.772 billion cu m (2015 est.)
country comparison to the world: 60
Natural gas - consumption:
17.14 billion cu m (2015 est.)
country comparison to the world: 47
Natural gas - exports:
545 million cu m (2015 est.)
country comparison to the world: 42
Natural gas - imports:
6.79 billion cu m (2015 est.)
country comparison to the world: 31
Natural gas - proved reserves:
7.702 billion cu m (1 January 2017 est.)
country comparison to the world: 87
Carbon dioxide emissions from consumption of energy:
44.2 million Mt (2015 est.)
country comparison to the world: 64
Communications
Telephones - fixed lines:
total subscriptions: 3,119,735
subscriptions per 100 inhabitants: 32 (July 2016 est.)
country comparison to the world: 48
Telephones - mobile cellular:
total: 11,779,908
subscriptions per 100 inhabitants: 120 (July 2016 est.)
country comparison to the world: 78
Telephone system:
general assessment: modern telephone system is digital and highly automated; trunk services are carried by fiber-optic cable and digital microwave radio relay
domestic: competition among mobile-cellular service providers has led to a sharp increase in the use of mobile-cellular phones since 2000 and a decrease in the number of fixed-line connections
international: country code - 36; Hungary has fiber-optic cable connections with all neighboring countries; the international switch is in Budapest; satellite earth stations - 2 Intelsat (Atlantic Ocean and Indian Ocean regions), 1 Inmarsat, 1 very small aperture terminal (VSAT) system of ground terminals (2015)
Broadcast media:
mixed system of state-supported public service broadcast media and private broadcasters; the 5 publicly owned TV channels and the 2 main privately owned TV stations are the major national broadcasters; a large number of special interest channels; highly developed market for satellite and cable TV services with about two-thirds of viewers utilizing their services; 4 state-supported public-service radio networks; a large number of local stations including commercial, public service, nonprofit, and community radio stations; digital transition completed at the end of 2013; government-linked businesses have greatly consolidated ownership in broadcast and print media (2016)
Internet country code:
.hu
Internet users:
total: 7,826,695
percent of population: 79.3% (July 2016 est.)
country comparison to the world: 55
Transportation
National air transport system:
number of registered air carriers: 5
inventory of registered aircraft operated by air carriers: 75
annual passenger traffic on registered air carriers: 20,042,185
annual freight traffic on registered air carriers: 0 mt-km (2015)
Civil aircraft registration country code prefix:
HA (2016)
Airports:
41 (2013)
country comparison to the world: 104
Airports - with paved runways:
total: 20
over 3,047 m: 2
2,438 to 3,047 m: 6
1,524 to 2,437 m: 6
914 to 1,523 m: 5
under 914 m: 1 (2017)
Airports - with unpaved runways:
total: 21
1,524 to 2,437 m: 2
914 to 1,523 m: 8
under 914 m: 11 (2013)
Heliports:
3 (2013)
Pipelines:
gas (high-pressure transmission system) 5,873 km; gas (low-pressure distribution network) 83,619 km (2015); oil 850 km; refined products 1,200 km (2016)
Railways:
total: 8,049 km
broad gauge: 36 km 1.524-m gauge
standard gauge: 7,794 km 1.435-m gauge (2,889 km electrified)
narrow gauge: 219 km 0.760-m gauge (2014)
country comparison to the world: 28
Roadways:
total: 203,601 km
paved: 77,087 km (includes 1,582 km of expressways)
unpaved: 126,514 km (2014)
country comparison to the world: 26
Waterways:
1,622 km (most on Danube River) (2011)
country comparison to the world: 47
Ports and terminals:
river port(s): Baja, Csepel (Budapest), Dunaujvaros, Gyor-Gonyu, Mohacs (Danube)
Military & Security
Military expenditures:
1.01% of GDP (2016)
0.93% of GDP (2015)
0.87% of GDP (2014)
0.95% of GDP (2013)
1.04% of GDP (2012)
country comparison to the world: 112
Military branches:
Hungarian Defense Forces: Land Forces, Hungarian Air Force (Magyar Legiero, ML) (2011)
Military service age and obligation:
18-25 years of age for voluntary military service; no conscription; 6-month service obligation (2012)
Transnational Issues
Disputes - international:
bilateral government, legal, technical and economic working group negotiations continue in 2006 with Slovakia over Hungary's failure to complete its portion of the Gabcikovo-Nagymaros hydroelectric dam project along the Danube; as a member state that forms part of the EU's external border, Hungary has implemented the strict Schengen border rules
Refugees and internally displaced persons:
refugees (countries of origin): 5,950 applicants for forms of legal stay other than asylum (Ukraine) (2015)
stateless persons: 135 (2016)
note: 432,562 estimated refugee and migrant arrivals (January 2015 - May 2018); Hungary is predominantly a transit country and hosts about 200 migrants and asylum seekers as of March 2018; 1,626 migrant arrivals in 2017
Illicit drugs:
transshipment point for Southwest Asian heroin and cannabis and for South American cocaine destined for Western Europe; limited producer of precursor chemicals, particularly for amphetamine and methamphetamine; efforts to counter money laundering, related to organized crime and drug trafficking are improving but remain vulnerable; significant consumer of ecstasy
