The economy is rebounding but structural weaknesses persist

B3

SENSITIVE RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in August 2021.

Swipe to view more

GDP USD155.01bn (World ranking 55, World Bank 2020)
Population 9.75mn (World ranking 93, World Bank 2020)
Form of state Parliamentary Republic
Head of government Viktor ORBAN (Prime Minister)
Next elections 2022, presidential and legislative
  • Generally stable parliamentary democracy
  • EU membership
  • Strong, competitive manufacturing base
  • Deteriorated investment climate, as a consequence of unconventional economic policy measures since 2010
  • At times, difficult relations with the IMF and the EU
  • High public debt and large total external debt burden
  • Exchange rate vulnerability
  • Low level of FX reserves – import cover below three months
  • Vulnerable banking sector

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
Germany 27.5%
1
24.8% Germany
Romania 5.5%
2
7.7% China
Italy 5.0%
3
5.8% Austria
Slovakia 4.8%
4
5.8% Poland
Austria 4.2%
5
5.1% Czech Republic

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Road vehicles 16.4%
1
14.9% Electrical machinery, apparatus and appliances, n.e.s.
Electrical machinery, apparatus and appliances, n.e.s. 13.6%
2
9.4% Road vehicles
Telecommunication and sound recording apparatus 7.7%
3
6.2% Office machines and automatic data processing machines
Power generating machinery and equipment 6.8%
4
5.5% Medicinal and pharmaceutical products
Medicinal and pharmaceutical products 6.0%
5
5.5% Other industrial machinery and parts
The conformity of domestic law with EU rules on late payment in business-to-business transactions unfortunately does not protect traders from the uncertain payment behavior of domestic companies, with the average payment term at over 35 days.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

When considering legal action, it is worth keeping in mind that domestic courts are known for the lengthy and costly nature of their proceedings. In fact, commencing legal action in Hungary would be unreasonable in most cases and pre-legal collection efforts remain the only effective option

Although domestic insolvency law aims at rescuing companies to increase the chances of recovering debts, it provides no limitations as to how much of the debt may be written off in restructuration negotiations and it is rare for unsecured creditors to recover from insolvent debtors in practice.

Popular Risk Reports: Americas

Popular Risk Reports: Europe

Popular Risk Reports: Asia Pacific

Popular Risk Reports: Middle East