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Hungary

    Hungary


    Overview
    • Area: 93,030 sq. km.
    • Capital: Budapest
    • Official language: Hungarian
    • Currency: Hungarian forint; abbreviations: Ft, HUF;
    • Form of government: republic
    • Population: 10 million
    • International Airport: Budapest Ferihegy, BUD
    • OECD member since: 1996
    • EU member since: 1 May 2004



    Population

    According to the preliminary information provided on the national census conducted in 2011, the population of Hungary fell slightly under 10 million. Bringing the population decrease to a halt is a primary government objective. The age pyramid depicts an aging population, with 15-16 percent in the 65+ age group.

    Close to 20 percent of Hungarians live in Budapest and its suburbs. This concentration is mostly due to the capital's primary role in the country's higher education, public administration and economy, as well as the traffic infrastructure. In addition to the high concentration in Budapest, the number of people living in large and mid- size towns is also significant, and migration from small towns is typical.

    In terms of ethnic composition, the vast majority of the population is Hungarian, but the peoples from neighboring countries and those that settled in Hungary during previous centuries have strong minority representation. The following is a list of minorities from the most to the least populous: Romas, Gypsies, Germans, Croats, Slovaks, Romanians, Ukrainians, Serbs and Slovenians.

    Economic Information

    The sectorial structure of the Hungarian economy is mostly compatible with other countries at the same level of development. The service sector accounts for slightly less than two-thirds of the GDP. Within the service sector, the private services (trade, tourism, finance and other economic services) are highly developed. Services, especially economic services, represent a sizeable portion of the country's export. The transportation sector (with some companies owned by the state and others by private corporations) offers optimum conditions for transit traffic due to Hungary's favorable geographical location. The state-run service sectors (health, education, public administration) failed to keep pace with the other service sectors and their fundamental transformation is therefore high on the political agenda.

    The agricultural sector, for which Hungary has especially favorable climate conditions, represents approximately 5 percent of the country's GDP. Crop yields vary greatly from one year to the next, which is not sufficiently compensated by subsidies, capital supplies and investment incentives.

    In line with international trends, the industrial sector accounts for around one quarter of the country's GDP. Recently, primarily export-focused industries have been able to increase their output. These include the automotive industry, telecommunications and computer technology, while food and light industries have fallen back and the construction industry, as a result of the crisis, remains in a poor condition in 2012. The shortfall in the food industry is mostly attributed to the adverse conditions generated by Hungary's accession to the European Union.

    Capital Investments

    The volume of Foreign Direct Investments (FDI) is over EUR 68.5 billion, one of the highest per capita figures in the Central and Eastern European region. The vast majority of investments were funneled into service industries and competitive processing industries (automotive and electrical equipment manufacturing). Of all the foreign direct investments in Hungary, 71 percent originates from the European Union and 22 percent from Germany. In 2010, the total amount of foreign direct investments completed in Hungary reached EUR 378 million. In the first half of 2011 the balance of direct investments was EUR 753 million, which was EUR 90 million less than in the same period of the previous year.

    Source: Ministry for National Economy - An Overview of current direct capital investment processes (30 September 2011)

    The volume of Hungarian direct investments abroad is more than EUR 115.2 billion, one of the highest per capita figures in the Central and Eastern European region. The majority of such investments come from the service industries and the crude oil and processing industries. Fifty-three percent of Hungarian foreign direct investments are located in Central and Eastern Europe. In 2010, the total amount of Hungarian foreign direct investments completed abroad amounted to EUR 949 million, which is down by EUR 355 million compared to the previous year. In the first half of 2011, the total amount of Hungarian foreign direct investments completed abroad was EUR 199 million, which is up by EUR 231 million compared to the previous year.

    Source: Ministry for National Economy - An Overview of Hungarian capital export processes (30 September 2011)


    Neighboring Countries:
    • Austria
    • Slovakia
    • Ukraine
    • Romania
    • Serbia
    • Croatia
    • Slovenia