PESTLE Insights: Macroeconomic Outlook Report - Hungary

PESTLE Insights: Macroeconomic Outlook Report - Hungary

Summary

Mining, manufacturing and utilities activity contributed 23.83% to the gross value added (GVA) in 2018, followed by financial intermediation, real estate and business activity (21.37%), and other services (19.71%). In nominal terms, the three sectors are expected to grow by 8.5%, 5.9% and 5.9%, respectively in 2019.

Central Hungary (including the sub-regions of Budapest and Pest) and Transdanubia (including the sub-regions of Central Transdanubia, Western Transdanubia and Southern Transdanubia) generated around 73.57% of Hungarian GDP and comprised 60.04% of the country’s population, as of 2017.

The overall Budapest Stock Market Index (BUX) exhibited a robust upward trend over the past year. As of October 24, 2019, BUX stood at 42,475.53 in comparison to 36,452.74 on October 24, 2018, witnessing a y-o-y growth of 16.52%.

Scope

  • As per the Global Competitiveness Report 2019, Hungary’s infrastructure ranked 27th out of 141 nations, with a score of 80.7 out of 100.
  • Under the Modern Cities program, the Hungarian government plans to invest US$12.3bn across 260 projects by 2022, in the areas associated to education, healthcare, water, urban development, energy and transport.
Reasons to buy
  • Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
  • PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
  • Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
  • This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.


Did you Know? 4
Country Highlights 5
Country Snapshot 7
PESTLE Insights 21
Political Landscape 22
Economic Landscape 23
Social Landscape 30
Technological Landscape 33
Legal Landscape 36
Environmental Landscape 37
Outlook 38
List of Figures
Exhibit 1: Hungary’s Performance in the Country Risk Analysis in Comparison to East Europe and the World 11
Exhibit 2: Performance Overview (Score: 1-100) 11
Exhibit 3: Broad Categories and Weights behind the Index 12
Exhibit 4: Budapest Stock Market Index - BUX (October 2018 - October 2019) 14
Exhibit 5: Key Sectors Contribution to the Economy (2014 - 2021f) 15
Exhibit 6: Inward and Outward FDI (2014 - 2018) and Inward FDI Flow by Activity (2018) 16
Exhibit 7: Net Direct Inward Investment Flows - Major Contributors (2018) and Outward FDI Flow by Destination Countries (2018) 18
Exhibit 8: Key Infrastructure Indicators 20
Exhibit 9: Real GDP and Household Consumption Growth Rate (2014 - 2021f) 24
Exhibit 10: Real GDP Growth Rate Comparison (2018) 24
Exhibit 11: Export, Import and Trade Balance (2014 - 2021f) 25
Exhibit 12: Current Account Balance (2014 - 2021f) 25
Exhibit 13: Top Three Commodity Exports, % of Total Exports (2014 - 2018) 26
Exhibit 14: Electrical Machinery and Its Equipment, % of World Exports (2018) 26
Exhibit 15: Interest Rates (November 2009 - November 2019) 28
Exhibit 16: Exchange Rate and Inflation Rate (2014 - 2021f) 28
Exhibit 17: Public Finance (2014 - 2021f) 29
Exhibit 18: General Government Debt (2014 - 2021f) 29
Exhibit 19: Employment/Unemployment (2014 - 2021f) 31
Exhibit 20: Average Annual Wages (2014 - 2021f) 31
Exhibit 21: Labour Cost Index (2014 - 2021f) 31
Exhibit 22: Rural/Urban Share of Total Population (1990, 2000, 2010, 2020f) 32
Exhibit 23: Age-group Share of Total Population (2000, 32
2010, 2020f)
Exhibit 24: Gender Split (1990, 2000, 2010, 2020f) 32
Exhibit 25: Internet Users % of Total Population, Mobile Penetration Rate and Broadband Penetration Rate (2018) 34
Exhibit 26: Number of Patents Granted Per Million Population (2018) 35
Exhibit 27: High-technology Exports (% of manufactured exports) (2018) 35
Exhibit 28: Doing Business in Hungary (2020) 36
Exhibit 29: Corruption Perception Index (Rankings) (2018) 36
Exhibit 30: CO2 Emissions (2011 - 2017) 37

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