Economy of Hungary - statistics & facts
Fidesz-KDNP, the Hungarian governing party, was elected amidst a difficult economic situation following the 2008 crisis when significant actions were needed to control government finances. Hungary made progress in achieving high economic development and improving living standards over the second half of the 2010s. This progress was reflected in increasing gross domestic product (GDP) figures and declining unemployment rates.
However, a series of global events had negative effects on the country’s economy in recent years, including the coronavirus (COVID-19) pandemic, the energy crisis, and the Russia-Ukraine war, not to mention soaring inflation rates.
The value of goods imported to Hungary peaked in 2022 at over 164 billion U.S. dollars, marking a 15 percent increase compared to the previous year. Germany has also become the country’s leading import partner, followed by Austria and China, both accounting for over 10 billion euros worth of imports. Electrical machinery and equipment alongside vehicles constituted the country’s main import products, followed by mineral fuels and oils. Furthermore, in 2022, Hungary imported a nearly 20 billion euros’ worth of nuclear reactors, boilers, machinery, and mechanical appliances.
GDP figures are expected to increase
In 2022, Hungary’s GDP amounted to approximately 180 billion U.S. dollars, marking a decrease from the preceding year. Following a swift recovery from a drop of over 13 percent in the second quarter of 2020, the growth rate of GDP totaled 6.5 percent in the second quarter of 2022. However, the GDP growth rate slowed down over the following quarters, reaching even negative values, and totaling 0.5 percent at the end of 2023. Nevertheless, figures are forecast to follow an increasing trend with the country’s GDP reaching nearly 290 billion U.S. dollars by 2028. In the last decade, the service sector accounted for the highest share of gross domestic product, with the travel industry being one of its main drivers. Despite the difficulties faced over the past years due to the coronavirus (COVID-19) pandemic and rising energy costs, the tourism industry is expected to regain its momentum and reach a nearly nine percent share in GDP by 2025.Germany is Hungary's main trading partner
Hungary has been a member of the Organization for Economic Co-operation and Development (OECD) since 1996 and the European Union (EU) since 2004. By the 2010s, Germany had become the country’s most important export partner, accounting for almost 36 billion euros worth of product exports in 2022. Hungary has an open, export-orientated economy that recorded a positive trade balance each year between 2011 and 2020. However, 2021 brought negative values in terms of the trade balance of goods and by 2022, Hungary's trade deficit reached nearly 13 billion U.S. dollars. The country’s most important export products have mainly consisted of vehicles and goods related to the electrical machinery industry, with mineral fuels and oils, as well as pharmaceuticals figuring among Hungary’s main export products.The value of goods imported to Hungary peaked in 2022 at over 164 billion U.S. dollars, marking a 15 percent increase compared to the previous year. Germany has also become the country’s leading import partner, followed by Austria and China, both accounting for over 10 billion euros worth of imports. Electrical machinery and equipment alongside vehicles constituted the country’s main import products, followed by mineral fuels and oils. Furthermore, in 2022, Hungary imported a nearly 20 billion euros’ worth of nuclear reactors, boilers, machinery, and mechanical appliances.
