Hungary - Export Britain

Export Britain

Hungary

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Capital
Budapest

Largest city
Budapest

Administrative divisions
19 counties

Currency
Forint (HUF)

Area
93,030km2

Population
(2013)     9,908,798 

Calling code
+36

Official language
Hungarian

Latest Business Opportunities

See more opportunities for Hungary.

Ease of trading across borders

Importing a standard container of goods into Hungary requires:

7documents
19days
£527

Introduction

The economy of Hungary is a medium-sized, high-income and open economy. Hungary is a member of the Organisation for Economic Co-operation and Development (OECD) since 1995, a member of the World Trade Organization (WTO) since 1996, and a member of the European Union since 2004. The service sector accounts for over 60% of GDP and its role in the Hungarian economy is steadily growing due to constant investments into transport and other services in the last 15 years. Located in the heart of Central-Europe, Hungary’s location plays a significant role in the rise of the service sector as the country’s central position makes it suitable to invest.

Economic snapshot (% annual growth rate)

201220132014-17
GDP -1.7 1.2 1.9
Export of goods and services 1.7 5.3 5.2
Import of goods and services -0.1 5.3 5.8
Inflation 5.7 2.7 2.5
Exchange rate (per £) 355 332 232
Population -0.3 -0.2 -0.2
Source: Oxford Economics

Economic outlook

The Hungarian economy grew by 0.6% in the final quarter of 2013. The past year has seen a gradual rebalancing in terms of growth drivers towards domestic demand, a pattern that is expected to continue in 2014. Growth is expected to maintain to a large extent its current momentum in the beginning of 2014 before fading gradually as the impact of the government’s stimulus packages diminishes. Growth of 2.2% in 2014 is still above trend.

Trade outlook

Hungary’s largest trading partners include Germany, Russia, UK and France. Trade relations with Japan have been growing as Hungary sought Japanese capital and technology and hoped to gain a share of the Japanese market as that country opened its doors to foreign trade. Trade with China has also been increasing with the share of exports from China increasing to over 8% of total exports into Hungary. The share of UK exports to Hungary is expected to decline as the rest of Asia continues to increase its prominence within Hungary.


SWOT analysis

Strengths
Well-qualified labour force.
Weaknesses
Corruption.
Opportunities
Location in the heart of Europe. Business friendly environment.
Threats
Hungary is very dependent on credit from abroad, especially credit provided by Eurozone banks.

Hungary's trade with the UK

Sector segmentation growth

Sectors to watch:
  • sector
  • sector
Manufacturing
  • manufacturing
  • manufacturing

Fastest-growing exporters into Hungary

Rank2012
1 Hong Kong
2 Canada
3 Canada
4 India
5 Turkey
6 Nigeria
7 Slovakia
8 Singapore
9 US
10 Poland

Total merchandise trade - Leading import partners

Total merchandise trade - leading import partners
Opportunities for UK businesses

With a population of just over 10 million, Hungary is a strong location for foreign direct investment, and home to a strong domestic corporate sector. With an extensive road and railway network and skilled workforce the country is an ideal place for British companies to set up a branch serving as a gateway to the East. UK businesses can seek opportunity in the following sectors: electronics, engineering, software and life sciences. Opportunities exist also in tourism, transport, retail, food, environment and construction.

Find support in this market.

Your local Chamber provides a range of export services and links to overseas markets.
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