Hungary Overview of Economy (2025)

1. GDP and Economic Structure

• The private sector contributes approximately 80% of Hungary’s Gross Domestic Product (GDP).
• GDP composition by sector:
  • Services: 64%
  • Industry: 33%
  • Agriculture: 3%

2. Foreign Trade

• Hungary has an export-oriented economy, with foreign trade accounting for a significant portion of GDP.
• Approximately 80% of Hungary’s international trade is conducted with OECD countries.
• Main export destinations (latest available data, 2025):
  • Germany: ~30-32%
  • Austria: ~12%
  • Italy: ~5-6%
  • France: ~5%
• Main import partners (latest available data, 2025):
  • Germany: ~28-30%
  • Austria: ~7-8%
  • Italy: ~7-8%

3. Labor Market and Employment

• Unemployment rate (2025): ~4-5%, with higher unemployment rates in rural areas compared to Budapest.
• Minimum wage (2025): Adjusted annually; latest figures available from the Hungarian Ministry of Finance.
• Average gross monthly salary (2025): Continues to rise, reflecting economic growth and inflation adjustments.

4. EU Membership and Economic Integration

• Hungary joined the European Union on May 1, 2004.
• EU membership allows access to European markets, funding programs, and trade benefits.
• The country is part of the EU Single Market, facilitating free movement of goods, services, capital, and labor.

5. Foreign Investment and Business Climate

• Hungary offers 100% foreign ownership in most industries.
• Corporate tax rate: 9% (one of the lowest in the EU).
• Key industries attracting foreign investment:
  • Automotive manufacturing (Mercedes-Benz, Audi, BMW, Suzuki).
  • Electronics and IT (Samsung, Bosch, Huawei).
  • Renewable energy and battery production (CATL, Samsung SDI).
  • Financial services and fintech (numerous international banks and startups).

6. Infrastructure and Connectivity

• Hungary has a well-developed road and rail network, with direct connections to major European cities.
• Budapest Liszt Ferenc International Airport serves as a regional hub for passenger and cargo transport.
• Danube River transport plays a key role in European trade.

7. Currency and Monetary Policy

• Hungary’s currency: Hungarian Forint (HUF).
• The country is not part of the Eurozone but aligns its monetary policy with the European Central Bank (ECB).
• Inflation rates vary annually and are managed by the Hungarian National Bank (MNB).

Conclusion

• Hungary remains an attractive destination for foreign investors in 2025 due to its strategic location, EU membership, skilled workforce, and competitive tax system. The country continues to benefit from strong trade ties, economic diversification, and foreign direct investment in key sectors.
• For detailed regulations and investment incentives, consulting a Hungarian tax expert or business advisor is recommended.