Hungary - Market OverviewHungary - Market Overview
Hungary is located in Central Eastern Europe with a population of 9.9 million and has fully transitioned from a centrally planned economy to a market-based one since the fall of communism in 1989. It is a member of the OECD (1996), NATO (1999), and the European Union (2004). Per capita income is nearly two-thirds that of the EU-28 average and total GDP is USD 133 billion. The private sector accounts for more than 80% of GDP. Hungary boasts a strategic location in Europe, access to EU markets, a highly skilled and educated work-force, and a sound infrastructure which have led companies such as GE, Alcoa, Morgan Stanley, National Instruments, Microsoft, IBM and many others to locate facilities here, both in manufacturing and services. According to the database “Uniworld” there are currently 404 wholly-owned U.S. companies in Hungary. Including their subsidiaries, the figure totals 612. However, government of Hungary statistics show that there are over 1600 companies with some sort of U.S. affiliation, employing over 90,000 Hungarians. In terms of employment, this makes the U.S. the second-largest investor in Hungary after Germany. Many of these companies find that Hungary’s geographic position in Central Europe also offers a strategic logistical hub within the region.
Foreign direct investment (FDI) in Hungary has helped modernize industries, create jobs, boost exports and spur economic growth. Hungary’s cumulative FDI stock has totaled more than USD 110 billion since 1989. Key sectors include automotive, IT, electronics, logistics, and more recently shared services (back office and/or call center operations.
Meanwhile, U.S. exports to Hungary have exceeded USD 1 billion dollars in each of the last five years, led by electronics, IT equipment, automotive components, industrial engines and other manufacturing technologies and supplies. According to U.S. Department of Commerce data, exports to Hungary in 2015 totaled $1.72 billion, which was a 7% decrease compared to 2014.
For a complete listing of the most promising industries, please see Chapter 4, Leading Sectors for U.S. Export and Investment.
Hungary Trade Development and Promotion