Digitalisation to add EUR 9 bn to Hungary’s GDP by 2025

Digitalisation could add up to 9 billion euros to the output of the Hungarian economy by 2025, according to a fresh survey by McKinsey & Company.

In euro terms Hungary’s GDP came to 124 billion euros in 2017.

The analysis sent to MTI on Wednesday says speeding up the digitalisation of the economy should be a priority for Hungary if the country is to boost productivity and achieve sustainable economic growth.

If Hungary were able to exploit the potential in digitalisation, the share of the digital economy would grow to 11.2 percent as part of GDP by 2025 from 6.9 percent in 2018, McKinsey said.

McKinsey said it is a key challenge that Hungarian companies, and small and medium-sized businesses in particular, are lagging behind their counterparts in developed economies in terms of the use of digital solutions.

For example, just 8 percent of Hungarian SMEs use e-invoicing compared to 32 percent in digital front-runner countries.