Chamber of Commerce Country Factsheet Last update: 06.11.2017
Your advisors at the Chamber of Commerce
- Steven Koener+352423939379
- Diana Rutledge+352423939335
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.
Source: The CIA World Factbook - Hungary
Growth is projected to moderate in 2016 due to a temporary contraction in public investment as a new cycle of EU structural funds commences, but should pick up again in 2017. Private demand should remain solid and employment should continue to expand, supported in part by the still large public work schemes. The disappearance of economic slack and the one-off effects of lower energy prices will push up inflation during 2017.
The fiscal stance will be broadly neutral in 2016, but is set to become expansionary in 2017 even though economic slack will largely be eliminated. The public work schemes (which cost ½ per cent of GDP) should be gradually scaled down as employment opportunities in the private labour market expand. With rising inflation, the central bank may need to consider moving towards a more neutral policy stance by end-2017.
Productivity growth has been low since the global financial crisis. Broad structural reforms are needed to secure more competitive firms and an adequately skilled labour force. In particular, red tape should be cut and regulatory impact assessments should be better used to improve transparency, stability and formulation of regulatory policies. The effectiveness of labour market training programmes should be enhanced together with measures to improve vocational training, work-family balance and lifelong learning. A comprehensive SME strategy could increase economic dynamism and inclusiveness.
Source: OECD - Economic Forecast
|Gross domestic product, constant prices|
|Gross domestic product, current prices|
U.S. dollars (Billions)
|Gross domestic product per capita, current prices|
U.S. dollars (Units)
|Inflation, average consumer prices|
|Volume of imports of goods and services|
|Volume of exports of goods and services|
Percent of total labor force
|Current account balance|
U.S. dollars (Billions)
|Current account balance|
Percent of GDP
Source: IMF Statistics - Hungary
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 15.01.1990 (Memorial 1990, A, p. 648)
- Effective as of 21.04.1991 (Memorial 1991, A, p. 372)
Air Services agreement
- Agreement from 03.11.1964 (Memorial 1969, A, p. 778)
- Effective as of 12.3.1970 (Memorial 1970, A, p. 485)
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Hungary
Embassy of the Grand Duchy of Luxembourg in Hungary
Ambassador with residence in Vienna: Marc UNGEHEUER
Economic and Commercial Attaché (AWEX):
Honorary Consul with jurisdiction in the Republic of Hungary: Dr.István Horváth
Szeréna út 60 / A
Tel: +36 1 325 55 78 / +36 1 325 55 79
Fax: +36 1 325 55 80
Country risk as defined by Office du Ducroire for Hungary
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Other useful links
- CIA World factbook on Hungary
- La Hongrie sur le site de l'Awex
- Hungarian Chamber of Commerce
- Hungarian Investment and Trade Agency
- National Bank of Hungary
- National Tax and Customs Administration
- Hungarian Central Statistical Office
- Download list of Trade Associations
- Doing Business in Hungary
The Chamber of Commerce and the country