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Economy of Hungary

Hungary is an OECD high-income mixed economy with very high human development index and skilled labour force with the16th lowest income inequality in the world, furthermore it is the 15th most complex economy according to the Economic Complexity Index. The Hungarian is the 57th-largest economy in the world (out of 188 countries measured by IMF) with $265.037 billion output, and ranks 49th in the world in terms of GDP per capita measured by purchasing power parity. Hungary is an export-oriented market economy with a heavy emphasis on foreign trade, thus the country is the 36th largest export economy in the world. The country has more than $100 billion export in 2015 with high, $9.003 billion trade surplus, of which 79% went to the EU and 21% was extra-EU trade. Hungary has a more than 80% privately owned economy with 39,1% overall taxation, which provides the basis for the country's welfare economy. On the expenditure side, household consumption is the main component of GDP and accounts for 50 percent of its total use, followed by gross fixed capital formation with 22 percent and government expenditure with 20 percent.

Hungary continues to be one of the leading nations for attracting foreign direct investment in Central and Eastern Europe, the inward FDI in the country was $119.8 billion in 2015, while Hungary invest more than $50 billion abroad. As of 2015, the key trading partners of Hungary were Germany, Austria, Romania, Slovakia, France, Italy, Poland and Czech Republic. Major industries include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism (in 2014 Hungary welcomed 12.1 million international tourists). Hungary is the largest electronics producer in Central and Eastern Europe. Electronics manufacturing and research are among the main drivers of innovation and economic growth in the country. In the past 20 years Hungary has also grown into a major center for mobile technology, information security, and related hardware research.

On national level, Budapest is the primate city of Hungary regarding business and economy, accounting for 39% of the national income, the city has a gross metropolitan product more than $100 billion in 2015, making it one of the largest regional economy in the European Union. Budapest is also among the Top100 GDP performing cities in the world.

Sectors

Agriculture
Agriculture accounted for 4.3% of GDP in 2008 and along with the food industry occupied roughly 7.7% of the labour force. These two figures represent only the primary agricultural production along with related businesses, agriculture makes up about 13% of the GDP. Hungarian agriculture is virtually self-sufficient and due to traditional reasons export-oriented. The most important crops are wheat, corn, sunflower, potato, sugar beet, canola and a wide variety of fruits (notably apple, peach, pear, grape, watermelon, plum etc.).

Health care

Hungary spent 7.4% of the GDP on health care in 2009 (it was 7.0% in 2000), lower than the average of the OECD. Total health expenditure was 1,511 US$ per capita in 2009, 1,053 US$ governmental-fund (69.7%) and 458 US$ private-fund (30.3%).

Industry

The main sectors of Hungarian industry are heavy industry (mining, metallurgy, machine and steel production), energy production, mechanical engineering, chemicals, food industry and automobile production. The industry is leaning mainly on processing industry and (including construction) accounted for 29, 32% of GDP in 2008. The leading industry is machinery, followed by chemical industry (plastic production, pharmaceuticals), while mining, metallurgy and textile industry seemed to be losing importance in the past two decades. In spite of the significant drop in the last decade, food industry is still giving up to 14% of total industrial production and amounts to 7-8% of the country's exports.

Automobile production

Hungary is a favoured destination of foreign investors of automotive industry resulting in the presence of General Motors (Szentgotthárd),Magyar Suzuki (Esztergom), Mercedes-Benz (Kecskemét), and Audi factory (Gyor) in Central Europe.

17% of the total Hungarian exports comes from the exports of Audi, Opel and Suzuki. The sector employs about 90.000 people in more than 350 car component manufacturing companies.

Services

The tertiary sector accounted for 64% of GDP in 2007 and its role in the Hungarian economy is steadily growing due to constant investments into transport and other services in the last 15 years.

Tourism

Hungary was the world's 24th most visited country in 2011. The Hungarian spa culture is world-famous, with thermal baths of all sorts and over 50 spa hotels located in many towns, each of which offer the opportunity of a pleasant, relaxing holiday and a wide range of quality medical and beauty treatments.

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Economy Of Hungary"

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