With a total size of 35,920 sq miles, Hungary is arguably the 108th biggest nation in the globe, but the IMF ranks its economy as the 57th strongest. It is a part of the European Union. The main city and the administrative and financial hub of Hungary are Budapest, the capital. Other significant cities are Gyor, Debrecen, Pecs, Miskolc, and Szeged. Farming, transportation, medical services, and manufacturing sectors are just a few of the sectors that have emerged and expanded throughout the nation. These industries are essential to the nation’s development and are described below.
Electronic and ICT
Another important economic industry in Hungary is the electronics market, which accounts for around 22% of the nation’s commercial output. The leading producer of electronics in Central Europe, the country accounts for around 26% of all devices produced in the region. About 115,000 individuals were directly employed by this sector.
Communication infrastructure, technology, and IT services make up the ICT area. One of the largest industries, ICT accounts for 10% of the country’s GDP and involves about 100,000 people. This industry has grown quickly in recent years and is now the top producer of communication equipment and computer hardware.
Among the most popular vacation spots in Europe is Hungary. In 2002, it was the globe’s 13th-most visited nation, while it ranked 24th in 2011. Over 150,000 individuals are engaged in the tourism business in Hungary as a result of a large number of visitors. The sector produced more than 4 billion euros in 2008.
The biggest natural lake in Central Europe, Lake Balaton, which draws approximately a million visitors a year, is among the nation’s top tourist destinations. The capital city, Budapest, receives more than 3 million tourists each year. It has one of the most well-known spa cultures in the world, with a variety of thermal spas.
One of the top choices for international investors in the car manufacturing sector is Hungary. Mercedes-Benz, Audi, and General Motors are among the manufacturers with factories in the nation. About 17% of all Hungarian exports are made up of Audi, Suzuki, and Opel. Around 100,000 people are employed by the country’s more than 350 enterprises that produce vehicle parts.
With an investment of over 3,300 million pounds, the Audi motor production site in Gyor is the biggest in Europe. Over 500,000 motors and cylinder heads are currently produced yearly at the Opel facility in Szentgotthard.
One of the agriculture sectors in Europe with the quickest growth is that of Hungary. The industry has expanded by about 50% over the past 50 years and added 700,000 employees. But since World War I, the farming sector has undergone a protracted and challenging growth that included the forcible nationalization of farmlands.
30,000 fewer acres were used for agribusiness between 1996 and 2000. Farming contributed about 17% of the GDP and hired roughly the same amount of labor before the financial and social revolution. But now that Hungary has undergone a transition, agriculture only contributes 3.3% of the country’s GDP and 4.7% of its workers. Additionally, their share of food exports has decreased to roughly 7%.
The rise of other industries and the reduction in output are to blame for the decline. The Hungarian agricultural sector is nonetheless self-sufficient and focused on exports despite the decrease. The main crops farmed in Hungary are a variety of foods, as well as corn, oats, potatoes, and sugar beets.
The famed white sweet wine Tokaji is produced in a variety of wine areas around Hungary. With roughly 33,000 farmers involved, it also engages in significant livestock husbandry.
Other Important Sectors
A health insurance plan run by the State Medical Foundation makes up Hungary’s strong and well-established wellness infrastructure. The pharmaceutical industry is thriving and making a significant economic contribution.
One of the important sectors in the nation is the food sector. Exports from the food industry, which make up 6% of all exports, are essential to the country’s overall trade balance. Architecture, mining, oil, and steelmaking are all substantial contributors to the economy of the country as well as key employers and sources of foreign income.