HungaryChapters
Hungary has a diversified, open economy and benefits from a strong industrial base, particularly in automotive, electronics, and pharmaceuticals, and is an important player in Central Europe’s supply chains. However, Hungary faces several economic challenges, including high inflation and low levels of innovation and R&D. The economy is also vulnerable to external shocks, particularly from its trade dependence on Germany and other EU countries. Political risks continue to affect Hungary’s attractiveness to investors, and tensions with the EU over rule-of-law issues have the potential to impact the economy. Despite these difficulties, Hungary's economic growth has been relatively resilient, driven by foreign investment and exports.
Source: Coface
Key indicators
- Area
- 93,028 sq km
- Population
- 9,562,065 (2024)
- Government type
- parliamentary republic
- Languages
- Hungarian (official) 98.8%, English 25.3%, German 12.6%, Russian 2.1%, French 1.5%, Romanian 1.4%, other 5.1% (2022 est.)
- GDP
- $222.72 billion (2024)
- Growth rate
- 0.6% (2024)
- HDI
- 46
- Capital
- Budapest
Macroeconomic indicators
Overall, real GDP is expected to grow by 0.4% in 2025 with consumption serving as the main driver of growth. However, the expected 3.5% growth in consumption is anticipated to be offset by rising imports and a decline in investment. Exports are set to decrease, notably due to a decline in manufactured goods and business service exports.
GDP growth is forecast to pick up to 2.3% in 2026, supported by fiscal stimulus, and then to ease to 2.1% in 2027. Consumption is projected to be supported by strong wage growth and fiscal measures. Investment is set to gradually recover and increase by 4.1% in 2027, driven by public investment, a pick-up in dwelling construction and improving business sentiment. Exports are projected to increase by 3.8%, aided by the launch of assembly facilities in the automotive industry, and to rise by a further 4.1% in 2027 as external demand picks up At the same time, this economic recovery is set to lead to an increase in imports shifting the current account balance from a surplus of 0.1% of GDP in 2025 to a deficit of 0.4% by 2027.
Risks to the outlook include continued weakness in investment and exports linked to developments in global supply chains. In addition, inflationary pressures could pose a challenge potentially exacerbated by high minimum wage increases and other government measures.
Source: European Commission
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 until 31.12.2017 (Memorial 1990, A No.45, p.648)
- New 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 Vienna
Ambassador with residence in Vienna: Mr Jean GRAFF
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
H
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: Ducroire Office – Country Risk for Hungary