Hungary profile

Demography and Health

Hungary sits at about 9.56 million people in 2024, a middle‑sized population by European standards that places it around the 96th globally in sheer numbers. The demographic picture is aging. The birth rate stands at 9.1 births per 1,000 people (2023), while the crude death rate is relatively high at 13.4 per 1,000 (2023). Life expectancy at birth is 76.8 years (2023), reflecting solid health outcomes but also signaling ongoing aging pressures on social security and healthcare systems. The under‑5 mortality rate is 3.8 per 1,000 live births (2023), indicating a strong track record in child health, though it sits behind some Western peers. Net migration in 2024 is positive but modest at 16,223 people, suggesting the country continues to attract some foreign movement, but does not rely on migration to Asia‑ or Nordics‑level extents to fill labor gaps. The social fabric appears relatively resilient. Poverty at national poverty lines is 12.1% (2021), and the prevalence of undernourishment is 2.5% (2022), pointing to a country with room to improve social protection while maintaining reasonable living standards. Healthcare capacity is substantial: hospital beds are 6.84 per 1,000 people (2021) and physicians total 3.3 per 1,000 (2021), indicating a well‑resourced system able to meet routine demand and respond to shocks. Public health financing is meaningful, with current health expenditure at 6.36% of GDP (2023) and domestic health expenditure per capita, PPP, of about 2,103 international dollars (2022). Internet penetration is very high—91.5% of the population (2024)—reflecting broad digital access, which supports telemedicine, online health information, and digital public services. The suicide mortality rate stands at 16.4 per 100,000 (2021), highlighting a need for continued attention to mental health alongside physical health services. Overall, Hungary combines a robust health system with demographic aging, creating fiscal and policy imperatives around pensions, elder care, and preventive health.

Economy

Hungary presents an open, export‑led economy with a solid but evolving structure. GDP per capita in current US$ is 23,311 in 2024, while GDP per capita on a PPP basis is 47,636, signaling a level of material well‑being that supports consumer markets but still trails many Western European peers on nominal per‑person income. The economy is notably open to trade: exports of goods and services account for 74.7% of GDP in 2024, and imports are 69.1% of GDP, underscoring Hungary’s integration into regional and global value chains. High‑tech exports are a bright spot, totaling about 24.37 billion dollars in 2023 and helping to diversify the export mix beyond traditional manufacturing. R&D and innovation are part of the growth story. Research and development expenditure is 1.39% of GDP (2022), with resident patent activity of 433 applications (2021), and 1.39% of GDP spending indicates a reasonably productive innovation environment for a small economy. The economy benefits from a favorable current account, with a surplus of 2.28% of GDP in 2024. However, foreign direct investment net inflows are negative, at −14.7% of GDP in 2024, suggesting challenges in attracting new capital flows or offsets from repatriated profits and reinvested earnings; this points to a policy area where governance, business environment, and market access reforms could help restore stronger investor confidence. The inflation rate is moderate at 3.7% in 2024, contributing to a stable price environment for households and firms. Poverty remains a concern for a portion of the population (12.1% at national poverty lines in 2021), and sustainability of growth may hinge on boosting productivity, upgrading skills, and expanding high‑value sectors. The government’s governance indicators—while indicating functioning institutions—also show room for improvement in areas like regulatory quality and corruption control, factors that influence business climate and the efficiency of public services. Overall, Hungary sits on a credible growth path anchored by an export‑oriented manufacturing base, with innovation and digital capability serving as levers for upgrading the economy over time.

Trade and Investment

Trade is central to Hungary’s development model. Exports of goods and services comprise 74.7% of GDP in 2024, with imports at 69.1% of GDP, signaling extensive trade integration and heavy reliance on external markets for growth and supply chains. The country is a notable hub for high‑technology exports, which reached about 24.37 billion USD in 2023, illustrating a strong capacity in advanced manufacturing and tech‑intensive sectors. The logistics backbone is solid, with a Logistics Performance Index score of 3.1 in 2022, and a relatively high rank for trade infrastructure quality (about 15th worldwide in the observed metric) that supports efficient movement of goods across borders. Domestic innovation shows momentum: 433 patent applications by residents in 2021 and 1.39% of GDP spent on R&D in 2022. On the investment side, net FDI inflows are negative at −14.7% of GDP in 2024, reflecting either capital outflows, reinvested earnings by foreign subsidiaries, or a slower pace of new greenfield investment. The positive current account balance of 2.28% of GDP in 2024 lends macro stability and can help absorb some investment volatility, yet finance‑seeking enterprises may still encounter a cautious environment for fresh foreign capital. The strong export orientation, combined with robust infrastructure and digital capabilities (Internet penetration at 91.5% in 2024), positions Hungary to attract services, manufacturing, and tech‑enabled investments, provided policy frameworks continue to improve regulatory quality and reduce perceived corruption. In sum, Hungary’s external position is anchored by a vibrant export sector and a high‑tech footprint, but attracting fresh FDI remains an ongoing policy objective.

Governance and Institutions

Hungary’s governance profile shows a mix of strengths and vulnerabilities. Political Stability and Absence of Violence/Terrorism score 0.732 in 2023, indicating relatively stable conditions, though not at the top of global rankings. Regulatory Quality is 0.318 and Rule of Law is 0.427 in 2023, reflecting a functional but improvable regulatory environment and judiciary, with room to strengthen rule of law and predictability for business and investment. Control of Corruption sits at a near‑neutral −0.0005 in 2023, suggesting perceptions of corruption at a low but nontrivial level, which can affect investor confidence and public trust. Government Effectiveness is 0.373 in 2023, indicating competent public administration but not unmatched in excellence among peers. These indicators collectively point to a stable but constrained governance environment where further improvements in regulatory quality, anti‑corruption measures, and judicial independence could help unleash higher private sector investment and more inclusive growth. The broad access to digital services, supported by high internet usage (91.5%), also offers a pathway for more transparent governance and efficient public service delivery, even as institutional indicators highlight the need for continued reform efforts.

Infrastructure and Technology

Hungary demonstrates a strong technology and infrastructure profile for its level of development. Internet adoption is exceptionally high, with 91.5% of the population online in 2024 and a global leadership position in internet access among peers. Health infrastructure is robust: hospital beds total 6.84 per 1,000 people (2021) and physicians 3.3 per 1,000 (2021), supporting broad access to care and resilience in emergencies. The country is a significant exporter of high‑tech goods, with high‑tech exports around 24.37 billion USD in 2023 and a resident patent activity of 433 applications in 2021, underscoring a capacity for innovation and advanced manufacturing. Research and development expenditure amounts to 1.39% of GDP in 2022, signaling a continued commitment to knowledge‑intensive growth. The Logistics Performance Index (quality of trade and transport infrastructure) is 3.1 (2022), indicating well‑developed transport and logistics that facilitate efficient cross‑border trade. Life expectancy at birth is 76.8 years (2023), and other health indicators imply a capable workforce. Taken together, Hungary’s infrastructure and technology landscape supports competitiveness in manufacturing, digital services, and innovation‑driven sectors, while signaling opportunities to deepen STEM talent pipelines and scale startup ecosystems further.

Environment and Sustainability

Hungary’s environmental trajectory shows a mix of conventional energy reliance and progress toward sustainability. Renewable energy consumption accounts for 15.3% of total final energy consumption in 2021, indicating a substantial dependence on fossil fuels and a clear room for decarbonization and energy diversification. Per‑capita greenhouse gas emissions are 6.35 t CO2e in 2023, a moderate level within the European context, yet with potential to tighten further through efficiency gains and cleaner energy choices. Water stress, measured as freshwater withdrawal relative to resources, stands at 8.07% in 2021, a comparatively modest level that implies manageable but important water‑resource planning. The prevalence of undernourishment is low at 2.5% (2022), and the poverty rate at national poverty lines is 12.1% (2021), suggesting reasonable resilience to climate and environmental pressures, though regional disparities may persist. The environmental policy agenda in Hungary thus faces the imperative to accelerate renewable deployment, stimulate energy efficiency across industry and buildings, and continue reducing emissions while safeguarding competitiveness. In parallel, continuing to protect water resources and promote sustainable land use will support long‑term environmental and economic resilience in a highly export‑oriented economy.