HUNGARY – an attractive Business Partner
For centuries, the Hungarian people, the country’s history, culture and
economy have been an inseparable part of Central Europe. Today, it is a respected
member of the European Union, with a strong and modern economy
which is deeply integrated in international production and value chains.
Land and People
With a population of about 10 million people and a national territory of barely 100,000 km2, Hungary belongs to the small-to-medium-sized
countries of Europe.
At the beginning of 2020, Hungary had about 9.77 million inhabitants. The population number has been declining consistently since the early 1980’s, when it was larger by about one million persons. The average population density is 105 people/km², excluding the capital Budapest it is only 87 people/km².
Hungary is a parliamentary democracy with a single-chamber parliament (National Assembly – “Országgyűlés”). The head of state is the “President of the Republic”. The President is elected by the Parliament for a five-year tenure (with the possibility of one re-election). Legislative bodies are elected on the national level (National Assembly) and at the local level.
The National Assembly has 199 representatives. Regular elections take place every four years. At the local level, mayors and deputies to the local and the regional councils are elected every five years.
Since May 1, 2004, Hungary has been an official member of the European Union, and accordingly, EU law is fully applicable in Hungary. Hungary is entitled to 21 out of 705 seats in the European Parliament.
Hungary joined the so-called “Schengen Area” in 2007; border controls were therefore abolished at the Austrian, Slovenian and Slovakian borders. Hungary joined NATO on March 12, 1999.
Hungary is a modern service economy with a strong industrial sector. The economy is highly export-oriented, even when compared internationally. Hungary’s most important economic partners are the EU member states, particularly Germany.
Hungary has an advanced and strongly export-oriented industry: 65 per cent of industrial goods are sold to foreign customers. For comparison: this ratio is about 51% in Germany.
The most important branches are the automotive, construction, chemical, electric and electronic industries.
Hungary is considered one of the most export-oriented economies worldwide. The export of goods and services equalled 82% of GDP in 2019 – nearly twice the ratio of one of the world’s “export champions” Germany.
The commodity structure of foreign trade is dominated by technology-intensive goods: More than half of exports consist of machinery, cars/automotive components or electronic and electrical goods.