What are the growing economies in Hungary?

Lying in the landlocked region of central Europe, Hungary is famous for its historic architecture, world-class festivals held in the capital of Budapest, flourishing manufacturing industry, and famous inventions including the Rubik’s Cube and Microsoft Word and Excel, and the ballpoint pen.

However, despite these interesting facts that would make an excellent general knowledge quiz, Hungary is not playing any games when it comes to the development and expansion of their economy. As the 53rd largest economy in the world, Hungary has an annual output of  $265.037 billion, as well as a very high Human Development Index and a highly skilled labour force.

Are you wondering how Hungary is so successful? Below, we will take a look at the top-growing economies in Hungary in 2023.

Automotive

Source: AUDI

The automotive sector is a critical component of Hungary’s economy and accounts for 21% of all exports. There are more than 600 automotive companies in the country, of which they employ more than 100,000 people. Four of the world’s top automotive manufacturers have production facilities in Hungary, including Suzuki, Audi, Opel, and Daimler. In addition, serial production of Mercedes-Benz also began in the country in 2021.

In addition, automotive giant Audi has their second largest engine plant in the country, creating a stronghold for one of the world’s most successful car manufacturers.

iGaming

While the iGaming industry in Hungary cannot be compared to gaming giants like China or the US, the central European country has been making rapid progress in the iGaming industry in recent years. The total revenue of the global video gaming market in 2020 was valued at $25 million, of which 36% of this was generated in Hungary.

This figure is expected to rapidly rise even more in the years to come as classic casino providers provide poker games, blackjack, bingo, slots, baccarat and so much more within easy reach of consumers. One of the great things about iGaming is that they can be accessed so easily by the population, from anytime of day and in practically any location with wifi.

Electronics

Hungary is known for having a large industrial presence, in which their electronics productions account for 22% of total Hungarian manufacturing production. In fact, Hungary is the largest electronics producer in the whole CEE region and is home to six out of the 10 top electronic manufacturing services in Europe. These six providers include Jabil, Flextronics, Foxconn, Sanmina, Zollner and Videoton. These companies also conduct R&D activities which impact upon the success of many other industries across the globe.

IT

Having been known as the home of the creators of Microsoft Word and Excel, Hungary has long been on the map when it comes to their IT skills. The IT sector accounts for 10% of Hungary’s total GDP and employs over 100,000 people. The IT industry continues to grow rapidly in Hungary currently, with a lot of resources being channelled into computer assembly and communications equipment manufacturing.

There is also a huge amount of activity relating to R&D in the IT sector. Much of the R&D work focuses on software development including process control software, game programs and geographical information technology, focusing on navigation systems.

Some of the leading IT companies in Hungary include Ericsson, Oracle and Gameloft and Nokia.

Pharmaceuticals

The pharmaceutical industry is ingrained into Hungary’s economy and is renowned across the world for its rigour and success. In fact, Hungary is known for having the most developed pharmaceutical and biotechnology sectors in Central and Eastern Europe, providing the ideal base for life science companies.

Statistics show that in 2011, pharmaceutical exports reached USD 3.93 billion, with this figure being much larger today. The majority of pharmaceutical companies in Hungary are located around 4 major hubs, including Budapest, Debrecen, Szeged and Pécs.

Food industry

While it may not be as big as it used to be, the food processing industry in Hungary is nevertheless a key component of their economy. Hungary is the only net exporter of agricultural and food products in the CEE region and the industry accounts for 6% of their total exports.

Many of the food production companies in Hungary are classed as micro-businesses, employing fewer than 10 members of staff. The majority of these food processing businesses deal with meat, coffee, tea, and the manufacturing of soft drinks.

There is also a great deal of activity around the processing of vegetable oil, confectionery and snacks, of which many are owned by foreign investors. Data shows that foreign investors use many of Hungary’s raw components in their production.

Overall, Hungary is a very economically developed country in central Europe, in which their activity relating to manufacturing and R&D is essential to the global economy. The software and electronics industries are of most prominence, with igaming software being of significant importance. From what we can see, Hungary’s economy is set to thrive across 2023.