Invest Hungary: HIPA Guide
Summary
GDP annual basis in the last quarter of 2023.
GDP
volume:-0.9%(2023)
Prognosis (2024): 2.0–3.0% (MNB), 2.2% (IMF), 2.4%(EC)
•In Q4 2023, according to the raw data, the volume of the gross domestic product stagnated in Hungary compared to the same period of the previous year.
•Out of the 27 countries of the European Union, GDP decreased in 10 member states on an GDP annual basis in the last quarter of 2023.
Foreign trade
Goods exports: +4.7%, EUR 149.2 billion (January–December 2023) Goods exports: +1.3–2.7% (prognosis, 2024)
• According to MNB, the weak European economy will restrain it in the short-term, but in the medium term new FDI investments will stimulate Hungarian exports.
•In 2023, more than one third of Hungarian exports came from electrical machinery, apparatus and appliances (17.8%) and road vehicle (17.0%) exports.
•Between 2019 and 2023 the Li-ion battery exports increased more than eightfold (from EUR1.2 to9.6 billion).
Inflation
Harmonized Index of Consumer Prices: 3.7% (annual, January March, 2024)
Annual average inflation: 3.5–5.0% (prognosis, 2024)
•The Hungarian HICP exceeded the EU average (2.6%) by only 1 percentage point in March2024.
•According to MNB, inflation will permanently return to the central bank target rate (3.0% ± 1%) in 2025.
•In March 2024, the Harmonised Index of Consumer Prices (HICP) fell the most in Hungary in 1 year within the EU (from 25.6% to 3.6%).
FDI
Value of FDI stock from South Korea: EUR 8.9 billion (2022)
Value of FDI stock from Germany: EUR 18.7 billion (2022)
• Based on the FDI stock data for 2022, South Korea is the largest investor outside of Europe in our country, since the Asian country is responsible for 8.8% of the total FDI stock.
• In Hungary, the value of FDI stock from Germany amounted to some EUR 18.7 billion in 2022, thus it remains the most important relation.
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