Capital: Budapest

Geographical size: 93 025 km2

Population: 9 797 561 (2017)

GDP growth: 4% (2017)

Official languages: Hungarian

Currency: Hungarian Forint (HUF)

Hungary is a member of UN, IMF, OECD, WTO, NATO (1999) and EU (2004)

Largest towns: Debrecen, Miskolc, Szeged, Pécs, Győr, Székesfehérvár

Time zone: GMT + 1 hour

Climate: temperate; cold, cloudy, humid winters; warm summers

Geography: 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. 

Terrain: mostly flat to rolling plains; hills and low mountains on the Slovakian border. Highest point: Kékes (1,014 meters). Lowest point: Tisza River 78 m. Main rivers and lakes: Danube, Tisza, Lake Balaton, Lake Velence.

Land use: arable land: 49.58%, permanent crops: 2.06%, other: 48.36%

Irrigated land: 2,300 sq km

Environment: large ongoing investments to upgrade Hungary's standards in waste management, energy efficiency, and air, soil, and water pollution to meet EU requirements. 

Working age population: 6.2 million (2016)

Working age population  - by occupation: agriculture: 7.1%, industry: 29.7%, services: 63.2%

Agriculture - products: wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products 

Industries: metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles, IT, electronics, software

 

Source: HIPA, HCCI

 

Doing Business in Hungary

One of the competitive advantages Hungary has compared to other countries in the region is the government’s strong commitment to streamlining business processes and to increasing the competitiveness of both SMEs and large enterprises in Hungary through a wide range of available incentives.

Both refundable and non-refundable incentives are available to investors coming to or expanding in Hungary. The main types of incentives related to investments are cash subsidies (either from the Hungarian Government or from EU Funds), tax incentives, or low-interest loans.

Hungary is situated in the heart of Europe, which makes the country optimal for manufacturing, services and logistics. Hungary is the ideal base for investors who are planning cross-border business developments. Foreign capital is, in a large part, attracted by the highly skilled and highly educated labour force, particularly in the engineering, IT, pharmaceutical, economics, mathematics, physics and professional services sectors.  Around two-thirds of the workforce in Hungary has completed a secondary, technical or vocational education.

The average wages in Hungary are ca. 60% less than the average of the EU 27, which makes the Hungarian workforce highly competitive. High English proficiency (90% of students speak English) and high number of working hours/year make Hungarians a highly efficient workforce.

Beside the favourable business climate and availability of various incentives, Hungary is an ideal place for doing business for a series of other reasons:

  • ideal geographical position in the centre of Europe for manufacturing, services and logistics
  • excellent infrastructure, ready-made industrial sites, offices and science parks
  • good balance of labour costs and quality
  • investment friendly economic policy
  • competitive tax system
  • financial and fiscal stability

Source: EUGO Hungary

For more detailed economic and financial data, please, click here.

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