Hungary PESTLE Insights – A Macroeconomic Outlook Report

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Hungary PESTLE Insights Report Overview

The GDP of Hungary was $211.5 billion in 2023 and the country ranked 41st out of 153 nations in the GCRI Q3 2023. As of January 2024, Hungary’s proposed law aims to grant special status to digital companies employing over 60% of foreigners from outside Europe primarily aiming to attract IT workers. The bill suggests preferential tax treatment, exemption from public charges, and local business tax. On the other hand, the government aims to lure high-tech professionals and improve the competitive situation. Moreover, the bill is part of Hungary’s strategy to make the country more appealing, especially in the wake of the battery industry initiative.

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The Hungary PESTLE insights report consists of the country’s snapshot, risk factors about the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure, and natural and geographic aspects that might impact business.

GDP 2023 $211.5 billion
Key Landscape ·       Political Landscape

·       Economic Landscape

·       Social Landscape

·       Technological Landscape

·       Environmental Landscape

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 Hungary Macroeconomic Key Sector’s Contribution to the Economy

 Hungary Macroeconomic Key Sector’s Contribution to the Economy

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PESTLE Insights of the Hungary Macroeconomic Outlook Report

Political Landscape: Hungary exhibits strong governance indicators, particularly in the “voice and accountability” parameter of the World Bank’s Worldwide Governance Indicators (2023). The country fosters significant citizen participation in government selection and upholds freedoms of expression, association, and media access. The nation’s adherence to direct democracy traditions involves citizens in shaping important legislation.

Economic Landscape: Automobile giants such as General Motors, Audi, Suzuki, and Daimler have manufacturing plants in Hungary. In addition, Hungary hosts many automotive R&D centers and automotive part suppliers catering to global auto giants. Meanwhile, electronic goods manufacturers such as IBM, Phillips, Siemens, and Sony among others have a strong presence in the country. The presence of these electronics manufacturers has made Hungary one of the largest electronic goods manufacturers in the CEE region.

Key Landscape Analysis in the Hungary PESTLE Insights Report

Key Landscape Analysis in the Hungary PESTLE Insights Report

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Key Highlights

In August 2023, Hungary’s Ministry of Construction and Transport introduced a 10-year railway development plan. It focuses on modernizing the rail network, including upgrading Budapest’s HÉV lines, improving intercity connections, and enhancing county routes in collaboration with Volán.

Reasons to Buy

  • Macroeconomic Outlook Report identifies the potential of the country as an investment destination by analyzing the political, economic, social, technological, legal, and environmental (PESTLE) structure.
  • PESTLE Insights provides a 360-degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials, and the direction of operations.
  • Along with providing the country’s snapshot, the report captures the risk factors about the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure, and natural and geographic aspects that might impact business.
  • This report also highlights key clusters/cities which contribute significantly to the country’s GDP and population along with major companies’ presence in these areas.

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Table of Contents

List of Exhibits

Did You Know?

Country Highlights

Key Economic Updates

Country Snapshot

Political Landscape

Economic Landscape

Social Landscape

Technological Landscape

Legal Landscape

Environmental Landscape

Outlook

Table

Exhibit 1: Hungary’s performance in terms of its country risk analysis in comparison to East Europe and the World average

Exhibit 2: Performance overview (score: 0–100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: Hungary stock exchange index – BUX Index

Exhibit 5: Key sectors’ contribution to the economy

Exhibit 6: FDI inflows and FDI inward stock (2018–22)

Exhibit 7: Greenfield FDI projects and net cross border M&A deals (2018–22)

Exhibit 8: Key infrastructure indicators

Exhibit 9: Real GDP and household consumption growth rate (2019–26f)

Exhibit 10: Real GDP growth rate comparison (2023e)

Exhibit 11: Volume of exports and imports growth (2019–26f)

Exhibit 12: Current account balance (2019–26f)

Exhibit 13: Top three commodity exports, % of total exports (2018–22)

Exhibit 14: Exports of electrical machinery and equipment and parts thereof, % share of the world’s total (2022)

Exhibit 15: Interest rates (January 2019 – January 2024)

Exhibit 16: Exchange rate and inflation (2019–26f)

Exhibit 17: General government deficit (2019–26f)

Exhibit 18: General government debt (2019–26f)

Exhibit 19: Unemployment rate (2019–26f)

Exhibit 20: Labor force participation rate (2019–26f)

Exhibit 21: Average annual wages (2019–26f)

Exhibit 22: Rural/urban share of total population (1995, 2005, 2015, 2025f)

Exhibit 23: Age-group share of total population (1995, 2005, 2015, 2025f)

Exhibit 24: Gender split (1995, 2005, 2015, 2025f)

Exhibit 25: Internet users as a percentage of total population, mobile penetration rate and broadband penetration rate (2023e)

Exhibit 26: Number of patents granted per million population (2022)

Exhibit 27: High-technology exports, % of manufactured exports (2022)

Exhibit 28: Rule of law (rankings) 2023

Exhibit 29: Corruption perceptions index (rankings) (2023)

Exhibit 30: Renewable energy capacity (2018–23)

Exhibit 31: CO2 emissions (2018–22)

Figures

Exhibit 1: Hungary’s performance in terms of its country risk analysis in comparison to East Europe and the World average

Exhibit 2: Performance overview (score: 1–100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: Hungary stock exchange index – BUX Index (January 2022 – January 2023)

Exhibit 5: Hungary exchange rate (January 2022 – January 2023)

Exhibit 6: Key sectors’ contribution to the economy (2018–25f)

Exhibit 7: FDI flows (Q4 2020–Q4 2021) and FDI by sector (Q3 2021–Q4 2021)

Exhibit 8: FDI by countries and region (Q1 2021–Q4 2021)

Exhibit 9: Key infrastructure indicators

Exhibit 10: Real GDP and household consumption growth rate (2018–25f)

Exhibit 11: Real GDP growth rate comparison (2022e)

Exhibit 12: Volume of exports and imports of goods and services (2018–25f)

Exhibit 13: Current account balance (2018–25f)

Exhibit 14: Top three commodity exports, % of total exports (2018–21)

Exhibit 15: Electrical machinery and equipment and parts thereof, % of world’s total (2021)

Exhibit 16: Interest rates (December 2017 – December 2022)

Exhibit 17: Exchange rate and inflation (2018–25f)

Exhibit 18: Public finance (2018–25f)

Exhibit 19: General government debt (2018–25f)

Exhibit 20: Unemployment (2018–25f)

Exhibit 21: Average annual wages (2018–25f)

Exhibit 22: Labor cost index (2018–25f)

Exhibit 23: Rural/urban share of total population (1995, 2005, 2015, 2025)

Exhibit 24: Age-group share of total population (1995, 2005, 2015, 2025)

Exhibit 25: Gender split (1995, 2005, 2015, 2025)

Exhibit 26: Internet users as a percentage of total population, mobile penetration rate and broadband penetration rate (2022e)

Exhibit 27: Number of patents granted per million people (2021)

Exhibit 28: High-technology exports, % of manufactured exports (2021)

Exhibit 29: Rule of law index (ranking) 2022

Exhibit 30: Corruption perception index (rankings) (2022)

Exhibit 31: Renewable energy, installed capacity (2016–20)

Exhibit 32: CO2 emissions (2017–21)

Frequently asked questions

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