Hungary economics snashot – industries that will thrive in 2022

Hungary’s business environment has become quite attractive over the years to both domestic and international investors. Its medium-sized economy boasts several leading industries, including electronics and automotive. As a result, while it ranks 108^th globally in terms of geographical territory, its economy makes it to the top 60 largest economies in the world. So, if you are curious about which industries have shown the most promise for 2022, we are ready to give you the answers.

Gambling

For a long time, the Hungarian state had a monopoly over the gaming industry. So, unlike other countries where private investors could introduce online gambling sites, Hungarians had no choice but to rely on government provisions. But things seem to be taking a turn. The new proposals by the Hungarian parliament indicate that Hungarians could soon play in online gambling sites. That means that anyone can launch an online casino and take advantage of this change. Of course, there is a caveat- if an investor has previously offered gaming services without a license, they will not be eligible for one this time around.

Food and Agriculture

If you read about Hungary’s past, you will note that it has always been a productive region. After all, Hungarians could always count on the deep-water reserves, a ready workforce, good soil, and a favorable climate. And this has not changed over the years. If anything, recent high-tech solutions have only made agriculture easier, scaling the extent of large-scale operations. So, the agriculture industry is set to keep thriving.

Tourism and Real Estate

International and domestic tourists inject a lot of money into the Hungarian economy. Almost everyone touring the country has heard of its thermal waters and wants to bathe in them. People also come from far and wide to experience the spas and luxury hotels in the region. As a result, wellness tourism has been a tremendous economic boost. And, of course, this profitable industry has prompted investors to invest in vacation properties in the region. Others have also chosen to put up residential or commercial properties to serve this overwhelming number of visitors. And as COVID 19 comes to a slow, Hungarians can expect tourists to start streaming in soon.

Green Energy

Not a day goes by without environmental conservationists warning people of the dangers that await us if we continue this downward trend. And Hungarians have heeded this warning, choosing to invest more in green energy solutions. It also helps that the government has been at the forefront of this change, encouraging people to seek more sustainable energy sources. There’s a lot of innovation in this industry at the moment, and investors hoping to get in on the ground floor can do so now.

Innovation

As we mentioned under green energy, Hungary invests in innovative solutions. Anyone dealing with research and development components can put up quite a lucrative business in the region. People are always seeking cost-effective and faster ways to do things in all industries. So, if you have something to offer the market (whether business-wise or academically), you have a way in.

Manufacturing

Did you know that Hungary is a manufacturing hub? It serves as a great location due to its access to the main trade routes and excellent infrastructure. Anyone who wants to supply goods to Eastern and Western Europe can use this strategic location to their advantage. We should also add that the wages are averagely 40% of what other EU countries charge. And that the governments at all levels are pretty lenient to investors, encouraging them to inject more capital into their businesses. That’s why many U.S. investors have been moving to Hungary, searching for better manufacturing conditions. Besides, investors operating in Hungary are subject to lower corporate tax rates.

The top manufacturing industries include:

• Automotives: The Hungarian automotive industry actively employs more than 100,000 people and generates a fifth of the country’s GDP. It serves as one of the fastest-growing industries in the country, comprising more than 700 companies. You might think that the industry would be saturated with these many companies. But that’s hardly the case. Thanks to Hungary’s strategic location, good infrastructure, and favorable economic conditions, there is space for more investors.
• Electronics: More than 100,000 people living in Hungary make their living from this industry. It accounts for at least a fifth of the entire manufacturing industry.
• Pharmaceuticals and Medical Technologies: With over a century in the game, this industry stands strong, employing tens of thousands of people.

These are but a few of the industries set to shape Hungary’s economy in 2022 and beyond. Any investor hoping to break even and rack up profits should delve into researching these industries. And while you are at it, don’t forget to look into how the new gambling laws could shape the gaming industry in the region. All the best!