Hungary Economic Outlook
A manufacturing-driven economy:
Hungary, with a GDP of around $200 billion, has one of the most industrialized economies in Central Europe. The country is a major hub for automotive and electronics manufacturing, attracting significant foreign investment, particularly from German automakers. Economic growth has been relatively strong over the past decade, but in 2023, Hungary faced headwinds from high inflation, weak consumer demand, and government budget constraints.
Foreign investment and key industries:Hungary’s economy has benefited from its strategic location in Europe, with foreign investors drawn by relatively low labor costs and developed infrastructure. The automotive sector, featuring companies like Audi, Mercedes-Benz, and BMW, is a key pillar of the economy. The country is also an important producer of pharmaceuticals, chemicals, and renewable energy components. Despite strong exports, Hungary runs a large trade deficit due to its reliance on energy imports, particularly from Russia.
Challenges:Hungary’s economy faces multiple challenges, including high inflation, political uncertainty, and a reliance on EU funding. Inflation peaked above 25% in early 2023 before moderating, eroding real wages and reducing consumer purchasing power. Political tensions between Hungary and the EU have led to delays in receiving EU funds, which could impact future investment and infrastructure projects. Additionally, Hungary has one of the highest debt levels in Central Europe, limiting fiscal flexibility.
Hungary’s economic outlook:Hungary’s economy is expected to grow moderately in the coming years, supported by foreign investment and the recovery of domestic demand. However, risks remain, particularly regarding inflation, fiscal sustainability, and geopolitical tensions. Hungary’s ability to balance economic growth with fiscal discipline and EU relations will be crucial for its long-term prospects.
Hungary's Macroeconomic Analysis:
Nominal GDP of USD 213 billion in 2023.
Nominal GDP of USD 223 billion in 2024.
GDP per capita of USD 22,157 compared to the global average of USD 10,589.
GDP per capita of USD 23,272 compared to the global average of USD 10,589.
Average real GDP growth of 2.9% over the last decade.
Average real GDP growth of 2.9% over the last decade.
Sector Analysis
In 2022, services accounted for 57.6% of overall GDP, manufacturing 17.1%, other industrial activity 20.6%, and agriculture 4.7%. Looking at GDP by expenditure, private consumption accounted for 49.5% of GDP in 2023, government consumption 20.0%, fixed investment 25.3%, and net exports 5.2%.International trade
In 2023, manufactured products made up 86.2% of total merchandise exports, mineral fuels 3.1%, food 8.6%, ores and metals 1.4% and agricultural raw materials 0.6%, with other categories accounting for 0.1% of the total. In the same period, manufactured products made up 79.4% of total merchandise imports, mineral fuels 9.6%, food 6.9%, ores and metals 2.7% and agricultural raw materials 1.0%, with other goods accounting for 0.4% of the total. Total exports were worth USD 130 billion in 2022, while total imports were USD 145.60 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.9% in the decade to 2024. To read more about GDP growth in Hungary, go to our dedicated page.
Fiscal policy
Hungary's fiscal deficit averaged 3.9% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 4.6% in the decade to 2024. For more information on Hungary's unemployment click here.
Inflation
Inflation averaged 4.8% in the decade to 2024. Go to our Hungary inflation page for extra insight.
Monetary Policy
Hungary's monetary policy rate ended 2024 at 6.50%, up from 2.10% a decade earlier. See our Hungary monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the forint weakened by 33.9% vs the U.S. dollar. For more info on the forint, click here.
Economic situation in Hungary
The economy posted a shallow rebound in Q4 annually on accelerating private spending and a softer fall in fixed investment. In Q1 2025, annual GDP growth likely remained underwhelming. Industrial output continued to languish in January–February amid rising producer price inflation. Meanwhile, data relating to private spending is mixed: Inflation spiked to an over one-year high in January–February and wage growth eased from Q4 in January, but retail sales growth rose from Q4 in the same month. On the external front, goods exports broadly stagnated after Q4’s fall, but growth in tourist arrivals strengthened through February. In other news, Prime Minister Viktor Orbán recently deployed a host of measures to curb the cost-of-living crisis—including price controls on food and tax cuts for mothers—in a bid to secure his re-election next year; his party has recently slid in opinion polls.Hungary Economic Forecasts
Projections out to 2034.58 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 42 expert analysts.
Want to get insight on the economic outlook for Hungary in the coming years? FocusEconomics collects projections out to 2034 on 58 economic indicators for Hungary from a panel of 42 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Hungary economy. To download a sample report on the Hungary's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.