According to Trading Economics global macro models and analysts, Hungary’s GDP is anticipated to reach 176.30 USD billion by the end of 2021. According to our econometric models, Hungary’s GDP will trend at 194.12 USD billion in 2022 and 204.80 USD billion in 2023 in the long run.
Is Hungary a prosperous country?
Hungary’s economy is a high-income mixed economy, with the Economic Complexity Index ranking it as the 9th most complicated economy in the world. Hungary is a member of the Organisation for Economic Co-operation and Development (OECD), with a high human development index and a highly skilled workforce, as well as the world’s 13th lowest income inequality. With $265.037 billion in yearly output, the Hungarian economy ranks 57th in the world (out of 188 nations surveyed by the IMF), and 40th in terms of GDP per capita calculated by purchasing power parity. Hungary has an export-oriented market economy with a strong focus on international trade; as a result, it is the world’s 35th largest export economy. In 2015, the country exported more than $100 billion worth of goods, resulting in a $9.003 billion trade surplus, with 79 percent of exports going to the European Union (EU) and 21% going to non-EU countries. Hungary’s productive potential is held by more than 80% of the country’s population, with overall taxation of 39.1% funding the country’s welfare economy. On the spending side, household consumption is the most important component of GDP, accounting for 50% of the total, followed by gross fixed capital formation (22%), and government expenditure (20%).
Hungary remains one of the most attractive destinations for foreign direct investment in Central and Eastern Europe: inward FDI totaled $119.8 billion in 2015, and Hungary spends more than $50 billion abroad. Germany, Austria, Romania, Slovakia, France, Italy, Poland, and the Czech Republic were Hungary’s main commercial partners in 2015. Food processing, pharmaceuticals, automobiles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism are all major businesses (in 2014 Hungary welcomed 12.1 million international tourists). Hungary is Central and Eastern Europe’s largest electronics producer. Electronics manufacturing and research are two of the country’s most important sources of innovation and economic growth. Hungary has also developed into a major hub for mobile technology, information security, and associated hardware development over the last 20 years. In January 2017, the economy’s unemployment rate was 68.7%, and the employment structure resembled that of a post-industrial economy. 63.2 percent of the workforce is employed in the service sector, with industry accounting for 29.7% and agriculture accounting for 7.1 percent. In SeptemberNovember 2017, the jobless rate was 3.8 percent, down from 11 percent during the financial crisis of 200708. Hungary is a member of the European Single Market, which has a population of over 448 million people. Several domestic commercial policies are influenced by European Union member agreements and EU legislation.
The BUX, a Hungarian stock market index listed on the Budapest Stock Exchange, includes large Hungarian companies. MOL Group, OTP Bank, Gedeon Richter Plc., Magyar Telekom, CIG Pannonia, FHB Bank, and Zwack Unicum are all well-known enterprises. Hungary also has a considerable number of specialized small and medium businesses, including several suppliers to the automobile industry and technology start-ups.
Budapest is Hungary’s financial and business capital. The capital is an important economic centre, having been categorized as an Alpha-world city in a research by the Globalization and World Cities Research Network, and being Europe’s second fastest-growing metropolitan economy. In comparison to the previous year, 2014, the city’s per capita GDP climbed by 2.4 percent, and employment increased by 4.7 percent. Budapest is Hungary’s most important business metropolis, accounting for 39 percent of the country’s total income. In 2015, the city had a gross metropolitan product of more than $100 billion, making it one of Europe’s greatest regional economies. Budapest is also one of the world’s top 100 GDP-performing cities, according to PricewaterhouseCoopers. Budapest is placed higher than Tel Aviv, Lisbon, Moscow, and Johannesburg in the Economist Intelligence Unit’s global city competitiveness index.
Hungary keeps its own currency, the Hungarian forint (HUF), despite the fact that its economy meets all Maastricht requirements except for public debt. At 66.4 percent in 2019, the public debt to GDP ratio is much lower than the EU average. Following the breakup of the Austro-Hungarian Empire in 1924, the Hungarian National Bank was established. It is now focusing on price stability, with a 3-percentage-point inflation target.
Is Hungary an impoverished nation?
Hungary is a Central European country with a population of ten million people. Despite the country’s excellent standard of living, many of its citizens are impoverished. Here are ten facts concerning Hungary’s poverty:
- According to the Organisation for Economic Co-operation and Development (OECD), the percentage of Hungarian children living in relative poverty increased from 7% in 2007 to 17% in 2012. Families have found it increasingly difficult to obtain affordable homes as property costs have risen, particularly outside major cities.
- Hungary has a lower poverty rate than the rest of the EU. While the EU average is 17 percent of the population living in poverty, Hungary has 14.6 percent of the population living in poverty.
- Many young people in the country believe they have no future. According to a research by the Hungarian Central Statistical Office, over half of those aged 19 to 30 want to work in another country.
- More families are accumulating debt as housing prices have risen. Over the last three years, housing prices have risen by an average of 31%. Sweden is the only European country where real estate prices are increasing faster.
- Nearly half of Hungarians (44%) cannot afford basic necessities. This contrasts to a European Union average of 19 percent.
- In Hungary, the northeastern portion of the country has the highest poverty rate. The poverty rates in the Ezak-Magyarorzag and Eszak-Alfold regions are higher than the EU average. The reasons for this range from a lack of infrastructure to a lack of economic activity to a workforce that is under-skilled.
- According to a Save the Children Foundation research, 6.1 Hungarian children die before their fifth birthday for every 1,000. This is higher than the EU average, as well as rates in Libya, Bulgaria, Cuba, and Macedonia. Because malnutrition is a major contributor to this alarmingly high figure, and hunger being a taboo topic in Hungary, the Save the Children Foundation has launched an initiative to offer vitamins, infant formula, and medicine to children and expectant mothers.
- Due of poverty, more children have recently been taken from their families. Children are placed in orphanages by the government, and they are not allowed to visit their parents.
- Digitalization, according to Hungarian Foreign Minister Peter Szijjarto, may be the solution to decreasing poverty. Hungary aims to be a hub for digital innovation, according to Szijjarto, who spoke at the United Nations. By 2018, the government intends to lower the tax rate on internet services and provide all Hungarians with broadband with speeds of 30Mbps.
- In the fourth quarter of 2016, Hungary’s unemployment rate was merely 4.5 percent. This is higher than the OECD average and comparable to the US rate.
While Hungarians suffer a variety of poverty-related difficulties, ranging from rising housing prices to hungry children, there is reason to be optimistic, as the country’s government and organizations such as Feed the Children are aware of the crisis and have solutions.
Is Hungary’s economy doing well?
Hungary’s economy is ranked 48th in the 2022 Index for economic freedom, with a score of 66.9. Hungary is placed 29th out of 45 countries in Europe, with an overall score that is lower than the regional average but higher than the global average.
Is Hungary a wealthier country than Romania?
Romania surpassed Slovakia in GDP per capita in 2020, and this year it surpassed Hungary, which is a one-of-a-kind economic performance, according to Marcel Ionescu-Heroiu, a senior urban development expert at the World Bank, speaking at the Caravan Smart City Sibiu videoconference, organized by the Romanian Association for Smart Cities in collaboration with the Sibiu City Hall.
Romania would exceed Poland in one to two years if current trends continue, he continued, according to local Agerpres. Ionescu-Heroiu hasn’t cited a source for the information.
In terms of GDP per capita stated in current values, the World Bank database shows that Romania (USD 12,900 in 2020) is still behind Hungary (USD 15,900) and Poland (USD 15,700), while the Slovak Republic (USD 19,200) is significantly ahead.
According to the latest World Bank data (for 2019), Romania was not far behind the Slovak Republic in terms of GDP per capita (USD 32,350 against USD 32,550), whereas Hungary and Poland were much ahead (USD 33,950 and USD 34,150).
Eurostat publishes GDP per capita based on PPP for the year 2020. Romania is ranked 72 percent of the EU average, behind Hungary (74 percent) and Poland (72 percent) (76 percent ). Slovakia does, in fact, fall behind Romania, with only 71% of the EU average.
Is Hungary more prosperous than Poland?
According to Forbes, Hungary has overtaken Poland in terms of GDP per capita after eight years, citing an article in the liberal monthly HVG.
Hungarian economic output per capita increased to 71 percent of the EU average in 2018, according to a summary based on Eurostat statistics. The same percentage was 68 percent in 2016 and 2017. (when adjusted for purchasing power parity).
At the same time, Poland’s relative share of GDP climbed to barely 70% from 68 and 69 percent in the previous years, compared to the rest of the EU.
Over the last decade, Poland and Hungary have been at odds. Until 2009, Hungary outperformed Poland, but since 2010, the Poles have outperformed Hungary.
Hungary now ranks 22nd in the EU GDP rankings, with Slovakia (73 percent) and Portugal (77 percent) ahead of it, and Poland (70 percent), Latvia (69 percent), and Greece (68 percent) behind it.
At the same time, the publication points out that the positive indicator is attributed not just to the expansion of the Hungarian economy in 2018, but also to population decline and a 3% drop in the forint’s foreign purchasing power.
What is Hungary’s most valuable export?
Machinery and transport equipment, consumer goods, agricultural products, chemicals, clothes, textiles, iron and steel, and wine are Hungary’s principal exports. Over 79 percent of trade is currently with EU members. Hungary’s most important trading partner is Germany.
Is Hungary classified as a third-world country?
Understanding World War II Bulgaria, the Czech Republic, Hungary, Poland, Romania, Russia, and China are examples of second-world countries, according to the first definition.
Is Hungary more impoverished than Greece?
Eleven nations, including Luxembourg and Ireland, have GDP per capita that is higher than the EU average: the Netherlands (128%), Austria (128%), and Sweden (123%). In addition, Germany (123 percent), Belgium (118 percent), Finland (109 percent), the United Kingdom (107 percent), and France (107 percent) are on the list (104 percent ).
Furthermore, in ten nations, GDP per capita was reduced by up to 30%. Italy has a 97 percent approval rating, Malta has a 96 percent approval rating, Spain has a 92 percent approval rating, the Czech Republic has an 88 percent approval rating, and Slovenia has an 88 percent approval rating (83 percent ). Cyprus (83 percent), Portugal (77 percent), Slovakia (77 percent), Lithuania (75 percent), and Estonia (75 percent) round out the list (75 percent ).
The remaining seven countries had GDP per capita that was at least 30% lower than the EU average. Poland and Greece receive 68 percent of the vote, while Hungary receives 67 percent. Latvia (65%) is at the bottom of the list, followed by Croatia (60%), Romania (58%), and Bulgaria (49%) in that order.
Hungary at the end of AIC list, as well
Clearly, GDP per capita is frequently used to indicate a country’s prosperity. However, showing the general living standards of the households is not always appropriate. As a result, actual
What is Europe’s poorest country?
Financial and social rankings of European sovereign states
- Despite having Europe’s greatest GDP growth rate, Moldova is one of the poorest countries in the continent, with the lowest GDP per capita.
- Madrid is Spain’s financial capital and one of Europe’s most important financial centers.