1.1.  Overview

• Area: 93 036 sq km
• Capital: Budapest
• Official language: Hungarian
• Currency: Hungarian forint; abbreviations: Ft, HUF; prevailing interest and currency rates
• Form of government: republic
• Population: 9 797 561 
• International Airport: Budapest Ferihegy, BUD
• OECD member since: 1996
• EU member since: 1 May, 2004.

1.2.  Economic information

The sectoral 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 favourable 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 represents approximately 4 percent of the country’s GDP. 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. The shortfall in the food industry is mostly attributed to the adverse conditions generated by Hungary’s accession to the European Union. However strong it may once have been, Hungary's light industry is now almost non-existent, as Hungary has also lost out to Southeast Asian export markets.

1.3.  Current economic situation

GDP growth

Hungary’s gross domestic product expanded 8.2 percent from a year earlier in the first quarter of 2022, above market expectations of a 6.9 percent expansion, preliminary data showed. On a seasonally adjusted quarterly basis, the economy grew 2.1 percent, easing from an upwardly revised 2.2 percent increase in the fourth quarter of 2021. Significant contributions were seen from industry and market services, while e xpansion was also noted for the manufacturing of food and beverages, refined petroleum products, and electrical equipment.

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Incomes 

Wages in Hungary decreased to 495657 HUF/Month in March from 526844 HUF/Month in February of 2022.

Use our salary calculator to calculate the total labor cost and the net wage on the basis of the gross salary, in compliance with the Hungarian legislation (2022).

Employment, unemployment

Employment Rate in Hungary increased to 63.84 percent in March from 63.71 percent in February of 2022.

The unemployment rate in Hungary fell to 3.5 percent in the February-April period of 2022, from 4.3 percent in the corresponding period of last year. The number of unemployed declined by 36 thousand to 170 thousand, while employment increased by 109 thousand to 4.684 million. The average time spent looking for a job was 9.2 months, with 34.7 percent of the unemployed looking for a job at least for a year.

Evolution of consumer prices 

Changes in prices also has an effect on the quantity and structure of production and consumption. Price statistics typically monitor changes in time of products put in circulation but there are also area price indexes (e.g. purchasing power parity). The consumer price index quantifies the change in consumer prices, while manufacturer price indexes observe changes in pricing from the perspective of manufacturers. There are also cost-based price indexes (e.g. for the agriculture or labour),which show the changes in time of production costs. 

Evolution of interest rates 

Evolution of exchange rate EUR/HUF

Evolution of exchange rate USD/HUF

Tax rates in Hungary, valid from 1 January 2021

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Summary forecast figures
(previous year=100%)

* Optimistic forecast of Pénzügykutató Ltd.

Source: Pénzügykutató Ltd., forecast

1.4.  The stock market: the Budapest Stock Exchange

The Budapest Stock Exchange (BSE) is the venue for trading with shares of public companies limited by shares and registered in Hungary, securities issued by businesses, and Hungarian state and other securities. The BSE has four trading sections: equities, securities, derivatives and commodities. For more information on the BSE and BUX, its leading index, see the BSE website:

http://www.bse.hu/topmenu/marketsandproducts/indices/bux

The Budapest Stock Exchange is a full-fledged member of a number of international professional alliances and organisations:

• Federation of European Securities Exchanges (FESE)
• World Federation of Exchanges (WFE)
• Financial Information Services Division / Information Industry Association (FISD/IIA)
• Association of Futures Markets (AFM)

1.5.  Visas, work and residence permits

The visa regulations of the Republic of Hungary are in compliance with the regulations and recommendations of the European Union and the Schengen Agreement. Hungary joined the Schengen area in December 2007.

Regarding Hungary’s Schengen membership, the following need to be highlighted: 

• visas and residence permits issued by any member state of the Schengen area are valid in the Republic of Hungary, and vice versa
• visas issued by Hungarian legations abroad, and residence permits granted by Hungarian national authorities, are valid for the Schengen area as specified on the stamp of the visa issued in the member states: “ETATES SCHENGEN”, i.e. valid for all Schengen States.

The Schengen visa and entry regulations apply only for stays that do not exceed 90 days. For periods longer than 90 days, the visa regulations of the respective member states apply.

For more detailed information regarding entry and residence permits and the relevant procedures, a list of countries whose citizens can travel to Hungary without a visa, and special regulations on the citizens of non-EU countries, please visit the website of the Ministry of Foreign Affairs.

1.51.  Other useful information

Hungary uses the metric system for units of measurements.

Hungarian date notation: year/month/day. Contrary to the Hungarian spelling rules, as from 1 January 2012, the food trade shall display the shelf-life of the products in the order of day/month/year in compliance with the regulations of the European Union.

Hungarian uses the comma as the decimal separator and the full stop as the thousand separator.

Time Zone

Hungary is in the Central European Time Zone (CET),which is one hour ahead of Greenwich Mean Time (GMT). The country uses the practice of daylight saving time, advancing clocks by one hour during the period from the last weekend in March to the last weekend of October. 

Normal business hours:

• Private and public offices: 8 a.m. to 4 p.m., closed on Saturdays and Sundays
• Retail: 10 a.m. to 6 p.m. Monday to Friday, 9 a.m. to 1 p.m. on Saturdays
• Shopping centres, hypermarkets: 7 a.m. to 9 p.m., seven days a week 
• Restaurants: 12 noon to 10 p.m.

The information above is not exhaustive and should only be considered as a guide because business hours may differ significantly in specific cases.

Public holidays in 2022:

• 1 January New Year’s Day 
• 15 March National holiday
• 15 April Good Friday
• 18 April Easter 
• 1 May Labour Day
• 6 June Pentecost
• 20 August Commemoration of the founding of the Hungarian state
• 23 October Commemoration of the Revolution of 1956 
• 1 November All Saints’ Day
• 24 December Christmas-Eve
• 25-26 December Christmas day and Boxing day