HungaryChapters
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
Key indicators
- Area
- 93,028 km2
- Population
- 9,728,337 (July 2021 est.)
- Government type
- parliamentary republic
- Languages
- Hungarian (official) 99.6%, English 16%, German 11.2%, Russian 1.6%, Romanian 1.3%, French 1.2%
- GDP
- $155.013 billion (2020 est.)
- Growth rate
- -4.9% (2020 est.)
- HDI
- 40
- Capital
- Budapest
Macroeconomic indicators
Economic growth is projected to remain strong but to slow somewhat in 2019 as capacity constraints bite. Real wage gains and employment increases will support private consumption, while investment will be stimulated by private firms and the disbursement of EU structural funds. Exports will benefit from robust external demand and new capacity expansion, although gains in market share will slow. Wage increases resulting from tighter labour market conditions will raise inflation, which is projected to exceed the central bank's 3% target in early 2019.
Fiscal and monetary policies are expansionary. In 2018, there have been tax reductions alongside widespread spending increases. Statutory minimum wages have also been raised sharply, with further increases scheduled. Prudent policies are needed to prevent overheating. Furthermore, with strong economic growth, a faster reduction of the budget deficit would allow the government to finance higher future age-related spending.
Source: OECD - Economic Forecast
IMF Statistics:
| Subject descriptor | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|
|
All Items, Consumer price index (CPI), Period average, percent change Percent (Units) |
17.14 |
3.707 |
4.456 |
3.466 |
3.028 |
|
Current account balance (credit less debit), Percent of GDP Percent (Units) |
0.315 |
2.213 |
1.241 |
0.933 |
1.179 |
|
Current account balance (credit less debit), US dollar US dollar (Billions) |
0.675 |
4.936 |
3.074 |
2.517 |
3.351 |
|
Exports of goods and services, Volume, Free on board (FOB), Percent change Percent (Units) |
9.792 |
-4.448 |
2.761 |
3.905 |
5.214 |
|
Gross domestic product (GDP), Constant prices, Percent change Percent (Units) |
-0.843 |
0.512 |
0.595 |
2.1 |
2.25 |
|
Gross domestic product (GDP), Current prices, Per capita, US dollar US dollar (Units) |
22301.861 |
23271.805 |
25916.328 |
28303.991 |
29866.768 |
|
Gross domestic product (GDP), Current prices, US dollar US dollar (Billions) |
214.098 |
223.06 |
247.759 |
269.916 |
284.122 |
|
Imports of goods and services, Volume, Cost insurance freight (CIF), Percent change Percent (Units) |
-0.921 |
-6.157 |
4.315 |
4.476 |
4.938 |
|
Unemployment rate |
4.075 |
4.475 |
4.3 |
4.2 |
3.965 |
Estimates
Source: IMF Statistics - Hungary
Relationships with Luxembourg
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 No.45, p.648)
- Effective as of 01.01.1990 (Memorial 1990, A No.45, p.648)
- Amendment of the Convention from 10.03.2015 (Memorial 2016, A No.210, p.4838)
- Effective as of 01.01.2018 (Memorial 2016, A No.210, p.4838)
Air Services agreement
- Agreement from 03.11.1964 (Memorial 1969, A, p. 778)
- Effective as of 12.3.1970 (Memorial 1970, A, p. 485)
Further information
Foreign Trade
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: Mr Marc UNGEHEUER
Sternwartestrasse 81
A-1180 Vienne
Austria
Tel.: (+43 1) 478 2142
Fax:(+43 1) 478 2144
E-Mail: vienne.amb@mae.etat.lu
Website: http://vienne.mae.lu
Honorary Consuls
Honorary Consul with jurisdiction over the Republic of Hungary:
Doc István HORVÁTH
Szeréna út 60/A
H-1025 Budapest
Hungary
Tel.: (+36) 1 325 55 78; (+36) 1 325 55 79
E-Mail: budapest@consul-hon.lu
Source: Ministry of Foreign Affairs of Luxembourg
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.
Link: Office du Ducroire - Hongrie