How good is Hungary economy? (2024)

How good is Hungary economy?

Hungary is ranked 29th among 45 countries in the Europe region, and its overall score is below the regional average but above the world average. Hungary's economic growth decelerated in 2019, turned negative in 2020, and rebounded in 2021. The country has slightly improved its economic freedom over the past five years.

Hungary has transitioned from a centrally planned economy to a market economy and is considered a high-income country by the World Bank. The country's top trading partners include Germany and Austria.

Hungary is an upper middle income country with Gross National Income (GNI) per capita of US$ 5,280.

The latest macroeconomic forecast for Hungary. Hungary's economy continued to grow rapidly in the first quarter of 2022 (2.1% q-o-q) on the back of a strong fiscal stimulus that boosted consumption and public investment.

With an Human Development Index (HDI) of 0.854 Hungary counts as one of the high developed economies by UN-definition.

1. Ukraine. With a per capita GNI of $3,540, Ukraine is the poorest country in Europe as of 2020.

Despite the salaries being lower than some of Hungary's neighboring countries, it balances out with an affordable cost of living, making the country a very cost-efficient place to live and work. Most expats are able to save some money while they're in the country too!

Hungary is ranked 29th among 45 countries in the Europe region, and its overall score is below the regional average but above the world average. Hungary's economic growth decelerated in 2019, turned negative in 2020, and rebounded in 2021. The country has slightly improved its economic freedom over the past five years.

By the first definition, some examples of second world countries include: Bulgaria, the Czech Republic, Hungary, Poland, Romania, Russia, and China, among others.

What is Hungary's main industry?

Electronics. The electronics industry is one of the largest industrial sectors in Hungary, accounting for 22% of total Hungarian manufacturing production. The country is the largest electronics producer in the CEE region, providing 26% of total regional production. Around 112,000 people are employed in the sector.

Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Hungary unemployment rate for 2021 was 4.12%, a 0.13% decline from 2020. Hungary unemployment rate for 2020 was 4.25%, a 0.83% increase from 2019.

The average salary in Budapest, Hungary is currently around 300,000 HUF (or €817 euros) after taxes in 2022. Salaries in Budapest are considerably higher than in the rest of Hungary.

Hungary is one of the EU's poorer countries, with a GDP in the lower third of all member states, though it is still better off than many of its central European and Balkan neighbors.

Sweden ranks No. 1 overall, according to regional perceptions in Europe.

CON: High taxes

In Hungary, VAT is at 27%, which is higher than in any other country in the European Union. Once you start making a salary, the tax you pay from the gross amount is also rather high, around 40%. This is a fixed rate rehardless of how much you earn.

Worldwide gross domestic product in 2021 was at about 12.259 US Dollar per capita. In contrast, the GDP in Hungary reached 18.773 US dollars per inhabitant, or 182.28 bn US Dollar in the whole country. Hungary is therefore currently ranked 55 of the major economies.

In general, whilst English is not widely spoken overall in Hungary, with around 20% proficiency across the country as a whole, it is widely spoken in the specific areas that matter most to tourists – the cosmopolitan areas of Budapest.

What is the fastest growing economy in Europe?

The European Union's fastest-growing economy in 2021 was Ireland, with the country's gross domestic product growing by 13.5 percent that year, according to the most recent forecast in 2022. Croatia's economy was expected to have grown by 10.2 percent, with the economy of Malta growing the third-fastest at 9.4 percent.

In ppp data, the five largest economies of Europe are Germany, Russia, France, United Kingdom, and Italy. Eight economies would have gdp above Int. $1 trillion in 2021 and 28 would have an economy of above Int.

Luxembourg is the wealthiest country in the European Union, per capita, and its citizens enjoy a high standard of living. Luxembourg is a major center for large private banking, and its finance sector is the biggest contributor to its economy. The country's main trading partners are Germany, France and Belgium.

Hungary is also the birthplace of many famous people. Erno Rubik, a sculptor and professor, invented the Rubik's Cube in 1974. Hungary boasts 13 Nobel Prize winners, and magician Harry Houdini was also born in the country's capital, Budapest. The Eastern European country's cuisine primarily consists of meat dishes.

By the first definition, some examples of second world countries include: Bulgaria, the Czech Republic, Hungary, Poland, Romania, Russia, and China, among others.

The average salary in Budapest, Hungary is currently around 300,000 HUF (or €817 euros) after taxes in 2022. Salaries in Budapest are considerably higher than in the rest of Hungary.

Hungary is ranked 29th among 45 countries in the Europe region, and its overall score is below the regional average but above the world average. Hungary's economic growth decelerated in 2019, turned negative in 2020, and rebounded in 2021. The country has slightly improved its economic freedom over the past five years.

Hungary's financial centre, it is the second richest capital and city in the region after Bucharest.

Hungary, a landlocked country in central Europe, is known for its spa towns and hot springs.

Is Hungary a tax haven?

Hungary is not officially seen as a tax haven, but its low corporate tax rates, easy incorporation laws, and prime location as a European Union nation make the Hungarian company an advantageous corporate vehicle for foreign investors.

How's Life? Hungary performs well in a limited number of well-being dimensions relative to other countries in the Better Life Index. Hungary outperforms the average in work-life balance and social connections. It underperforms average in income, education, health, environmental quality and life satisfaction.

Personal income tax (PIT)

Hungary has a personal income tax rate of 15% of the tax base. For resident taxpayers, the tax base is their whole income, while in the case of non-resident taxpayers it represents their locally taxable incomes.

NATO further expanded after the Cold War, adding the Czech Republic, Hungary and Poland (1999), Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia (2004), Albania and Croatia (2009), Montenegro (2017) and North Macedonia (2020).

Budapest, Hungary, is characterized by reasonably priced housing. According to our city rankings, this is a good place to live with high ratings in cost of living, business freedom and safety. Budapest is one of the top ten city matches for 2.4% of Teleport users.

Budapest is famous for its rich culture, underground caves, the mighty Danube River, and for being the Spa Capital of the World. Budapest is also known for its world-famous Ruin Bars, the drop-dead gorgeous Parliament Building, and its delectable local temptations.

The wealthiest region is Budakeszi, where the average salary of a Hungarian citizen is around 4,320 EUR/year. In the region of Dunakeszi, it is 4,300 EUR/year, while in the region of Győr, it is 3,970 EUR/year. Székesfehérvár, Érd, Mór, Paks, and Gödöllő are also amongst the wealthiest parts of Hungary.