Hungary’s Economy at a Glance

Main Indicators (2018)

  • GDP growth: 5%
  • Unemployment: 3.7%
  • Inflation: 2.8%
  • Budget balance: -2.2% of GDP

For more information, please visit the websites of the Hungarian National Bank and the Hungarian Central Statistical Office.

 

Taxation in Hungary

  • Hungary currently has the lowest corporate income tax rate in Europe at 9%.
  • Hungary’s Personal Income Tax Rate is one of the lowest in Europe, at a flat 15%.
  • The Hungarian government has also implemented a family-friendly policy, where couples who commit to having children can receive a 10 Million HUF loan for the purposes of starting a family. In the case that the couple has a fourth child, the mother will also be exempt from income taxes for life.
  • Additionally, couples who commit to having children are eligible for a loan of up to 10 Million HUF for the purposes of purchasing a home. Once the couple’s third baby is born, this loan will be forgiven.

These new policies have made Hungary into one of the most attractive European countries for businesses to invest in, and have contributed greatly to the country’s recent economic successes.

 

Hungary’s Investment Climate

  • The United States was Hungary’s 2nd largest non-European member trade partner in 2018, making up 2.4% of Hungary’s total trade. Trade between the two countries grew by 5.4%, to a total of $5.7 billion.
  • The United States is the 2nd largest investor in Hungary (only surpassed by Germany). According to the Hungarian Central Bank, FDI from the United States was $12.4 billion, making up 15.3% of total FDI in 2016.
  • According to the Hungarian Central Statistical Office, there are currently 1,700 American companies employing over 105,000 individuals in Hungary, making the USA the 2nd largest foreign employer in Hungary.

 

Infrastructure

Hungary’s strategic position in the heart of Europe makes it increasingly important as a regional distribution center. Hungary is located at the crossroads of four Trans-European and two ERTMS (European Rail Traffic Management System) corridors, enabling easy access to all parts of the continent.

  • Budapest Liszt Ferenc International Airport was named the best airport in Eastern Europe by Skytrax in 2014, 2015, 2016 and 2017.
  • Hungary has the third highest road density in Europe.
  • Hungary has the third fastest 4G mobile internet in the world (2017, OpenSignal).

 

Investing in Innovation

Hungary’s strategic position in the heart of Europe makes it increasingly important as a regional distribution center. Hungary is located at the crossroads of four Trans-European and two ERTMS (European Rail Traffic Management System) corridors, enabling easy access to all parts of the continent.

  • Budapest Liszt Ferenc International Airport was named the best airport in Eastern Europe by Skytrax between 2014-2019.
  • Hungary has the third-highest road density in Europe.
  • Hungary has the 5th fastest 4G mobile internet, and 7th largest 4G coverage in the world (2018, OpenSignal).