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Hungary Information Technology Q3 2018

BMI View:

There is a mixed outlook for Hungary's IT market over 2018-2022. There is a growth engine in enterprise spendinggrowth on software and services solutions, but the hardware segment is expected to be a drag. This pattern is repeated in the localindustry where software and services are outperforming through Hungary's emergence as a nearshoring centre. Political risk is anincreasing concern for investors and could lower the growth outlook if the Fidesz party is emboldened by the April 2018 electionvictory in pursuing their agenda on migrants and state intervention with the media, that brings it into direct conflict with EuropeanUnion rules and principles.

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