Hungary Hungary vs Romania Romania development indicators, 2024

Indicator
Hungary
Hungary, Value
Romania
Romania, Value
Hungary
Hungary, Rank
Romania
Romania, Rank
Hungary Hungary as % of
Romania Romania
Current account balance (% of GDP) 2.28 -8.36 37 99
Exports of goods and services (% of GDP) 74.7 35.6 17 70 210 %
Foreign direct investment, net inflows (% of GDP) -14.7 1.92 107 57
GDP per capita (current US$) 23,311 20,072 54 57 116 %
GDP per capita, PPP (current international US$) 47,636 48,712 47 45 97.8 %
Imports of goods and services (% of GDP) 69.1 41.7 23 67 166 %
Inflation, consumer prices (annual %) 3.7 5.72 58 35 64.7 %
Net migration 16,223 -28,466 41 182
Population, total 9,562,314 19,069,340 96 66 50.1 %

Demography and Health

In terms of demography, Hungary and Romania display distinct characteristics. Hungary has a crude birth rate of 9.1 per 1,000 people, higher than Romania’s 8.0, which reflects differing population dynamics. However, Hungary also has a higher crude death rate at 13.4 compared to Romania's 12.7, indicating potential challenges in population growth. Life expectancy at birth in Hungary stands at 76.8 years, marginally above Romania's 76.6 years, suggesting comparable health outcomes. Hungary reports a lower under-5 mortality rate at 3.8 per 1,000 live births compared to Romania's 6.6, indicating potentially better health care or socio-economic conditions for children. Both countries experience a prevalence of undernourishment at 2.5%, which signifies a similar level of food security among their populations. Interestingly, Hungary enjoys a positive net migration of 16,223, while Romania faces a negative net migration of 28,466, likely due to factors such as economic opportunities and political stability.

Economy

When examining economic indicators, Hungary exhibits a higher GDP per capita ($23,311) than Romania ($20,072), ranking 84th compared to Romania's 95th; however, in terms of GDP per capita adjusted for purchasing power parity, Romania slightly surpasses Hungary with $48,712 vs. $47,636. This indicates that, while Hungary has a higher nominal wealth per person, Romania offers better purchasing power. Hungary shows stronger exports of goods and services at 74.7% of GDP, which reflects its integration into global markets and adeptness in international trade, compared to Romania's 35.6%. Both countries are facing inflation rates, with Hungary at 3.7% which is lower than Romania at 5.7%, indicating a more stable price environment in Hungary. However, Hungary faces negative foreign direct investment inflows at -14.7% while Romania has positive net inflows at 1.9%, demonstrating stronger investor confidence in Romania for the moment.

Trade and Investment

Hungary's exports are a significant portion of its economy at 74.7% of GDP, reflecting its role as an export-oriented economy, especially in sectors like automotive and electronics. Conversely, Romania's exports contribute only 35.6% to its GDP, indicating a less export-driven economy. The import percentages also reflect these differences, with Hungary at 69.1% compared to Romania's 41.7%, suggesting Hungary's reliance on imports to support its high export levels. The current account balance indicates Hungary's economic stability at 2.3% of GDP, while Romania struggles with a deficit of -8.4%, further highlighting the differing economic conditions and trade dynamics between the two nations.

Governance and Institutions

On governance, Hungary ranks moderately well on various indices compared to Romania. For instance, Hungary's political stability score of 0.7 is higher than Romania's 0.4, indicating a more stable political climate. Furthermore, Hungary's government effectiveness score is 0.4, compared to Romania's -0.1, suggesting more effective governance. In terms of corruption control, Hungary scores -0, while Romania's score is also at 0, underlining a similar level of perceived corruption. However, regulatory and rule of law indicators are similar, with both countries showing a need for improvement. Hungary ranks slightly better in unemployment at 4.1% versus Romania’s 5.6%, which reflects a healthier labor market.

Infrastructure and Technology

Infrastructure plays a significant role in economic development. Hungary scores higher on the logistics performance index at 3.1 compared to Romania's 2.9, indicating better quality in trade and transport-related infrastructure. This serves as a strong factor for businesses operating in Hungary. However, when it comes to research and development expenditure as a percentage of GDP, Hungary invests 1.4%, significantly outperforming Romania's 0.5%. This emphasis on R&D can drive future innovations and economic growth in Hungary. Furthermore, Hungary leads in high-technology exports, generating $24.4 billion versus Romania's $9.7 billion, showing its advanced capabilities in technology and innovation.

Environment and Sustainability

In terms of environmental sustainability, Hungary's renewable energy consumption accounts for 15.3% of total energy consumption, which is significantly lower than Romania's 23.6%. This places Romania in a better position regarding sustainable energy usage. However, Hungary's level of water stress is slightly higher at 8.1%, compared to Romania's 7.4%, indicating that Hungary faces greater challenges in managing its freshwater resources. Additionally, Hungary’s total greenhouse gas emissions per capita are at 6.4 t CO2e, compared to Romania's 5.6, suggesting that Romania has a lower carbon footprint per person, aligning with its higher renewable energy usage.