According to allcitypopulation, Hungary is a landlocked country in Central Europe, bordered by Austria, Slovakia, Ukraine, Romania, Serbia, Croatia and Slovenia. The country has an area of 93,030 square kilometres and a population of around 9.8 million people. According to Petwithsupplies, the capital city of Hungary is Budapest with a population of 1 800 000 (2015). Other major cities include Debrecen with a population of 204 000, Szeged with a population of 163 000, Miskolc with a population of 160 000, Pécs with a population of 146 000 (2015). Hungary has a diverse landscape ranging from the Great Plain to the Carpathian Mountains in the north and east.
Hungary’s economy is classified as a high-income market economy and is one of the most developed countries in Central and Eastern Europe. The country’s main industries are automotive manufacturing, IT services, electronics production and food processing. Hungary also has strong agricultural sector which is largely responsible for its exports of wheat, corn, sunflower oil and pork products. Tourism also plays an important role in the Hungarian economy with many visitors coming to explore the country’s rich cultural heritage including its castles and thermal baths.
The Hungarian government has implemented various economic reforms in recent years to improve competitiveness and attract foreign investment such as reducing taxes on small businesses and cutting red tape for larger corporations. These efforts have been successful with Hungary being ranked as one of the most attractive investment destinations in Central Europe according to Forbes magazine in 2020.
In terms of international trade relations, Hungary is a member of both the European Union (EU) and NATO (North Atlantic Treaty Organization). The EU accounts for over two thirds of Hungarian exports while imports from China have grown significantly over recent years making it one of Hungary’s major trading partners after Germany, Austria and Italy.
Foreign Trade of Hungary
Hungary is a member of the European Union (EU) and the North Atlantic Treaty Organization (NATO). The country’s foreign trade is largely conducted with other EU members, with Germany, Austria and Italy being Hungary’s top three trading partners. In 2020, exports to these countries accounted for a combined total of over 54% of Hungary’s total exports.
The main export products from Hungary include machinery and equipment, vehicles, chemicals, food and beverages. Machinery and equipment are by far the biggest export category making up almost 30% of total exports in 2020. Other major exports include pharmaceuticals, textiles and apparel, rubber products and base metals.
Imports to Hungary are mainly made up of machinery and equipment (31%), vehicles (17%), chemicals (11%) as well as food and beverages (11%). China has become an increasingly important trading partner for Hungary in recent years with imports from China growing significantly since 2016. Other major import partners include Germany, Austria, Italy, France and Russia.
In terms of trade balance, Hungary had a positive balance in 2020 at €19 billion euros due to its high exports compared to imports. This was mainly driven by strong performance from the automotive sector as well as increased demand for Hungarian services such as IT services which grew by 8% in 2020 compared to 2019.
The Hungarian government has implemented various economic reforms to improve competitiveness in recent years such as reducing taxes on small businesses and cutting red tape for larger corporations. These efforts have been successful with Hungary being ranked one of the most attractive investment destinations in Central Europe according to Forbes magazine in 2020.
Major Trading Partners of Hungary
Germany, Austria and Italy are Hungary’s major trading partners, together accounting for over 54% of Hungary’s total exports in 2020. Germany is the largest trading partner with a trade volume of €19.6 billion in 2020, followed by Austria with €9.1 billion and Italy with €7.7 billion.
The main export products from Hungary to these countries include machinery and equipment (accounting for almost 30% of total exports), vehicles, chemicals, food and beverages as well as pharmaceuticals, textiles and apparel, rubber products and base metals. Imports from these partners are mainly composed of machinery and equipment (31%), vehicles (17%), chemicals (11%) as well as food and beverages (11%).
France is another important trading partner for Hungary with trade volume standing at €4.8 billion in 2020. France is one of the main suppliers to Hungary of agricultural products such as dairy products, wine and vegetables as well as machinery such as tractors, excavators and bulldozers. Other major import partners include Russia with a trade volume of €2.2 billion in 2020, the United States at €1.8 billion and China at €1.5 billion.
The Hungarian government has implemented various economic reforms to improve competitiveness in recent years such as reducing taxes on small businesses and cutting red tape for larger corporations which have had a positive effect on foreign trade relations with its major trading partners such as Germany, Austria, Italy and France.
Major Imports and Exports of Hungary
Hungary’s main exports include machinery and equipment, vehicles, chemicals, food and beverages as well as pharmaceuticals, textiles and apparel, rubber products and base metals. Machinery and equipment are the leading export product accounting for almost 30% of Hungary’s total exports in 2020. The main destinations for these exports are Germany (19.6 billion euros), Austria (9.1 billion euros), Italy (7.7 billion euros) and France (4.8 billion euros).
Vehicles are the second most exported product from Hungary with a trade value of 8.2 billion euros in 2020, mainly to Germany (3.2 billion euros) and Austria (1.5 billion euros). Chemicals account for 4.8 billion euros of exports with Germany being the main recipient at 2.5 billion euros followed by Italy at 1.3 billion euros and France at 0.6 million euros.
Food and beverages account for 4% of Hungary’s exports with Germany being the largest recipient at 1.4 million euros followed by Austria at 1 million euros and Italy at 0.7 million euros respectively in 2020. Pharmaceuticals account for 3% of total exports with Germany being the largest destination for these products at 1 million euros in 2020 followed by Italy at 0.9 million euroes and Belgium at 0.8 million euroes respectively in 2020..
In terms of imports, machinery and equipment are the leading import product accounting for 31% of Hungary’s total imports in 2020 with Germany being the largest supplier accounting for 10% of total imports followed by Austria (8%), China (7%),the United States (6%)and Russia(5%). Vehicles account for 17% of total imports with Germany being the largest supplier accounting for 5%, followed by Austria(4%), Japan(3%), Slovakia(2%)and China(2%). Other major import products include chemicals which accounted for 11% of total imports in 2020 with Germany again being the largest supplier accounting for 5%,followed by Italy(3%),China(2%)and Czech Republic(1%). Food and beverages accounted for 11% of total imports in 2020 mainly from Romania(4%)Germany(3%), Slovakia 2%, Austria 2%, Poland 1%.