Economy of Hungary

Main article: Hungary

GDP

2023

2022

Industry's share of GDP is less than 22.5%

Recession in the second half of the year

In the second half of 2022, amid the conflict in Ukraine, the Hungarian economy fell into recession.

GDP size forecast - $0.19 trillion

2021: Agriculture's share of GDP - less than 4%

Financial system

National debt

2023: State debt - 76% of GDP

Non-financial debt

2022: Aggregate non-financial debt

Currency: forint

2022:8% depreciation after the outbreak of conflict in Ukraine

Forint - Hungary's national currency - fell 8% from late February 2022 to early June. This is the second worst result in emerging markets after the Turkish lira.

1946: Record devaluation of pyonge and transition to forint

The monetary policy of Hungary in the transitional period after World War II was controlled by the Union Control Commission. The Central Bank of the country warned that the monetary issue would not bring to good, but the representatives of the USSR, who actually controlled the commission, did not want to listen to anything.

In May 1946, the Central Bank of Hungary issued a note with a face value of one quadrillion pence (2.4 US cents at the exchange rate at the end of the month, that is, the dollar cost 42 quadrillion pence). In July 1946, inflation was almost 42 quadrillion percent (4,2×1016). The dollar exchange rate in the same month was 460 octillion penge (4,6×1029).

On August 1, a new national currency began to circulate in the country - a forint, which was exchanged for penny at the 1:4×1029 rate.

Inflation

2023: Inflation 25.4%

The inflations Hungary level in decreased to 25.4% in February from 25.7% in January 2023.

2022

Inflation in November - 21.1%

Inflation growth in September to 20% is a record since 1996.

Inflation in Hungary reached 20% in September 2022, the highest since 1996. Hungary became the fourth European country with inflation above 20%. Among other Baltic countries.

Earlier, inflation in Hungary accelerated to its highest level in 24 years, haunting the central bank, which has already raised interest rates the most in the EU.

Consumer price growth in July by 13.7%

Consumer prices rose 13.7% in July 2022 from a year earlier, beating all estimates in a Bloomberg survey.

Core inflation, which does not account for volatile commodity prices, was even higher at 16.7%, indicating broad inflationary pressures in the economy.

Earlier in May, inflation in Hungary topped 10% for the first time in more than 20 years, putting pressure on the central bank to further tighten monetary policy and maintain the forint.

Consumer price growth in May by 10.7%

In May 2022, consumer prices rose 10.7% year-on-year, the fastest pace since 2001 and surpassing the median estimate of 10.4% obtained in a Bloomberg survey.

Core inflation, which excludes volatile fluctuations in food and energy prices, rose 12.2%, the fastest since 1998, according to a statement from the statistics office on Wednesday.

1946: Record hyperinflation in history - doubling prices every 15 hours

The highest hyperinflation in history was recorded in Hungary. From August 1945 to July 1946, prices in the country doubled every 15 hours. As in many cases, hyperinflation in Hungary is explained by the consequences of World War II.

Even before the outbreak of hostilities, the country went into debt to support Germany with weapons. The country's economy was destroyed, and Budapest also had to pay reparations, which accounted for up to 50 percent of the then budget.

Key rate

2023: 18%

The 18% key interest rate of the Central Bank of Hungary in March 2023 is the highest in the EU.

2022: 6,75%

Hungary raised its key rate to 6.75% on June 2, 2022. This is the maximum effective rate in the EU. By the end of June, the rate should rise to 7.05%, according to the Deputy Chairman of the Central Bank of Hungary.

Foreign trade

2023: Increase in imports from China by 60% since 2008

2022

Germany is the largest export destination

Trade deficit with China

Largest companies

Power

2022

Tenth place in the EU for energy generation by nuclear power plants

Maintaining low electricity prices due to special conditions for the supply of hydrocarbons from Russia

Hungary knocked out special conditions for the import of hydrocarbons from Russia from the European Commission. In December 2022, the cost of electricity in Hungary is 6 times cheaper than Germany.

2021: Natural gas is the main source of energy in the country

2020: Energy consumption per capita

and

Energy carriers

Energy supplies

2022: Participation in the Three Seas Initiative

Hungary is a member of the Three Seas Initiative, aimed at countering Russia.

2021: Hungary signed a contract with Gazprom for the supply of gas bypassing Ukraine

Hungary in September 2021 signed a Gazprom new contract with "" for a period of 15 years for the supply of 4.5 billion cubic meters of gas bypassing. Ukraine The agreement comes into force on October 1. It will be possible to change, supplement or extend the contract in ten years.

Kyiv, against the background of the contract between Budapest and Gazprom, allowed a complete stop of gas transit to Hungary through Ukraine.

2020: Dependence on Russian gas

Industry

2023: Industrial output slump due to German crisis

Industrial production in Hungary in December 2023 decreased by 8.7%. This is the largest drop since June 2020, compared with the median forecast of minus 7.8% in a Bloomberg survey.

Hungary's economic recovery likely stalled in Q4, Economy Minister Marton Nagy said in an interview, attributing the slowdown to the economic woes of Germany, Hungary's largest export market.

Mechanical engineering

2021: 390,000 cars produced

Food industry

2021: Cheese production - 9.9 kg per capita

Labour market

2022: Proportion of workers aged 65 or over - above 5%

Salaries

2023: Minimum wage - $383

2017: Average monthly salary

Unemployment

2023: Youth unemployment - 13.3%

2022: Unemployment rate - 3.0%

2020: Unemployment rate - 6.1%

Agriculture

2019: Low use of pesticides in agriculture

Consumption

Cars

2022: Minimum age to drive - 17

2018: Number of cars per 1000 people

Tea

2018: Per capita tea consumption per kg per year

Milk

2018: Milk consumption in litres per year per person

Meat

2023: Pork is the most consumed type of meat

2019: Pork is the most consumed type of meat

Beer

2019: Beer consumption in litres per year per person

Info-Communication Technologies

Social media

Tourism

2019: More than 15% of the population went on tourist trips. Germany is the most popular country

2018

Tourism revenues

Number of foreign tourists