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Hungary: Country and Foreign Investment

Economy and Currency

This page was last updated on 5 December 2019.

Hungary’s geographical position in central Europe and access to many EU markets makes it strategically important.

In 2018, the total GDP was US$156 billion. GDP has fluctuated recently though the 2018 figure represented an 11.4% increase on 2017. GDP per capita at purchasing power parity for 2018 was US$28,243. This figure has increased more steadily than GDP;  the increase from 2017 was 5.1%.

In July 2019, the current account deficit was US$135 million; the figure has been fluctuating throughout 2019. In 2017, imports totalled US$107bn and exports totalled US$97bn, leading to a trade surplus of $10bn. Germany, Italy, Austria, Russia and the United States are the main purchasers of Hungary's exports.

In October 2019, the rate of inflation stood at 2.9%. In the aftermath of the global financial crisis, unemployment rose to almost 12%, however, it has been falling since 2012 and was at a very respectable 3.5% in October 2019.  The service sector employs 64.4% of the population, followed by industry 30.9% and agriculture 4.7%.

The Hungarian currency is the forint (HUF), which has been convertible for all business transactions since 1996. The government has been indicating its intention to join the euro since 2003. There has been some resistance along the way, and at the time of writing (November 2019), there is still no timetable as to when it might happen.

 

 

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