(Last updated: 22 Mar 2012)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Hungary. This is regularly updated, and should be checked before planning travel.

Country overview

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Hungary was one of many countries granted European Union (EU) accession from the 1st of May 2004. Among the countries who were granted entry into the EU Hungary is one of the front runners whose openness to foreign investment and highly skilled workforce have made Hungary’s economy one of the strongest in Central Eastern Europe.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

Hungary is a multiparty democracy. The unicameral parliament has 386 members: 176 from single-member constituencies, 140 from regional lists and 70 from a national list. The president, who is elected by parliament, has little power. The Prime Minister, head of government, has the most powerful position.

Trade relations and statistics

Hungary is one of the most advanced Central European countries with traditionally close geographic, historical, cultural and economic ties to Austria and Germany and Russia. It is a foundation member of the Central European Free Trade Agreement (CEFTA) that includes most of the countries in the region (Poland, Czech Republic, Slovakia, Slovenia, Romania and Bulgaria).

Hungary joined the European Union (EU) and became part of a 450 million market as of 1 May 2004. The EU enlargement provides excellent opportunities to Australian companies.

Hungary is a member of the Visegrad Four, with Poland, Slovakia and the Czech Republic.

This is an unofficial grouping of the four Central European post-Communist countries, promoting close cooperation between the four countries newly joining the European integration.

Hungary is a member of:

• The North Atlantic Treaty Organization (NATO) (1999)
• Organization for Economic Cooperation and Development (OECD) (1996)
• World Trade Organization (one of the founding members)
• International Monetary Fund (1982)
• European Bank for Reconstruction and Development (EBRD)

Hungary’s position in Europe as a landlocked country and its relative lack of natural resources have necessitated a traditional reliance on foreign trade.

The statistics show the economic structures in both countries and the countries’ place in the global supply chains. Hungary, having exposed to foreign investments in automotive and electronics while Australia still exporting primary products.

However, much of Australia’s ‘new economy’ or services trade is not reflected in the statistics. For example, Australian software powers the Budapest Stock Exchange, and bionic ear implants have changed the lives of many deaf children. Australian insurer QBE also has a major presence in the Hungarian insurance market.

Future opportunities to develop trade and investment have been identified in infrastructure, government-related services (particularly health and e-government), consumer goods, food and beverages, computer and telecommunications software and services, building and construction technologies and education services. Hungary's EU accession also offers opportunities for Australian business in areas such as environmental technologies and solutions. (Source: Department of Foreign Affairs and Trade country brief)

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.