Hungary

GDP (US$ Billion)

132.03 (2017)

World Ranking 56/191

GDP Per Capita (US$)

13,460 (2017)

World Ranking 58/190

Economic Structure

(in terms of GDP composition, 2017)

Services
(54.90%)
Industry
(26.00%)
Agriculture
(3.00%)

External Trade (% of GDP)

169 (2016)

Currency (Period Average)

Hungarian Forint

274.43 per US$ (2017)

Political System

Republic

Overview

Since transitioning from a centrally planned economy to a market economy, Hungary has made significant economic progress. Investment and private consumption are now among the key drivers of growth, supported by the recovery of credit to the private sector. Hungary’s economy is set for a slowdown over the coming quarters, having grown far above its long-term trend growth rate in 2017 and 2018. However, the Hungarian economy will continue to outperform its regional peers and the eurozone over the coming quarters.

Source: Fitch Solutions

 

Major Economic/Political Events and Upcoming Elections

April 2018
Prime Minister Viktor Orbán was re-elected for a fourth term; his Fidesz party won a supermajority in the national assembly.

 

March 2019
France-based automotive supplier GMD Group announced plans to build a vehicle parts factory in Dorog, northern Hungary, with an investment of HUF14.5billion (USD52 million).

 

March 2019
Hungary's governing Fidesz party was suspended from the European People's Party.

 

Sources: BBC Country Profile – Timeline, Fitch Solutions

Major Economic Indicators
Graph: Hungary real GDP and inflation
 
Graph: Hungary real GDP and inflation
 
Graph: Hungary GDP by sector (2018)
 
Graph: Hungary GDP by sector (2018)
 
Graph: Hungary unemployment rate
 
Graph: Hungary unemployment rate
 
Graph: Hungary current account balance
 
Graph: Hungary current account balance
 

f = forecast
Sources: IMF, World Bank, Fitch Solutions
Date last reviewed: July 31, 2019

External Trade

Merchandise Trade

 

Graph: Hungary merchandise trade
 
Graph: Hungary merchandise trade
 
 

Source: WTO
Date last reviewed: July 31, 2019

 

Graph: Hungary major export commodities (2018)
 
Graph: Hungary major export commodities (2018)
 
Graph: Hungary major export markets (2018)
 
Graph: Hungary major export markets (2018)
 
Graph: Hungary major import commodities (2018)
 
Graph: Hungary major import commodities (2018)
 
Graph: Hungary major import markets (2018)
 
Graph: Hungary major import markets (2018)
 

Sources: Trade Map, Fitch Solutions
Date last reviewed: July 31, 2019

 

Trade in Services

Graph: Hungary trade in services
 
Graph: Hungary trade in services
 

 

Source: WTO
Date last reviewed: July 31, 2019

Trade Policies
  • Hungary has been a member of the World Trade Organization (WTO) since January 1, 1995 and a member state of the European Union (EU) since May 1, 2004.

  • Hungary's main trade partners are in the EU, and the absence of customs charges supports large volumes of trade. All EU member states adopt common external trade policy and measures. As such, the country's trade policy is largely identical to that of the wider regional bloc.

  • Hungary applies the EU's Common External Tariff, which means that goods manufactured and imported from within the EU are not subject to customs charges. The EU updated its trade policy (and by extension its import tariffs, customs, duties and procedures) in 2017 and 2018. The average tariff rate for EU states is just 1%, which is among the lowest globally, although goods imported from outside the EU will incur duties of between 0% and 17%. Most of the country's major trade partners are within the EU, hence risks are less pronounced, such that Hungary's average tariff rate stands at 1.5%. Once goods are cleared by customs authorities upon entry into any EU member state, these imported goods can move freely among EU member states without any additional customs procedures.

  • In December 2016, EU states agreed on a proposal to modernise the EU's trade defence instruments with a view to shielding EU producers from damage caused by unfair competition. The proposed regulation amends current anti-dumping and anti-subsidy regulations to better respond to unfair trade practices and furnishes Europe's trade defence instruments with more transparency, quicker procedures and more effective enforcement. In exceptional cases, such as in the presence of distortions in the cost of raw materials, it will enable the EU to impose higher duties through the limited suspension of the lesser duty rule. This will provide some protection to Hungary's secondary and tertiary sectors.

  • In 2016, the European Commission (EC) introduced an import licensing regime for steel products exceeding 2.5 tonnes. The regulation will be active until May 15, 2020. In Q215, the EC issued regulations on trade restrictions with Turkey on cattle, beef, watermelons and prepared tomatoes. This will help to protect domestic agriculture and regional farming businesses.

  • In June 2018, the EU imposed import duties on 182 goods from the United States in reaction to the steel and aluminium import duties imposed by Washington on the EU.

  • The EU is party to some 50 free trade agreements (FTAs) and, consequently, access to other markets of the countries concerned is currently mediated through those agreements. The EU's Generalised Scheme of Preferences (GSP) came into effect on January 1, 2014. Under the scheme, tariff preferences have been removed for imports into the EU from countries where per capita income has exceeded US$4,000 for four years in a row. Regarding Hong Kong, the territory has been fully excluded from the EU's GSP scheme since May 1, 1998.

  • A number of Mainland China-origin products are subject to EU's anti-dumping duties, including bicycles, bicycle parts, ceramic tiles, ceramic tableware and kitchenware, fasteners, ironing boards and solar glass. As of December 2017, the EU did not apply any anti-dumping measures on imports originating from Hong Kong.

Sources: WTO - Trade Policy Review, Global Trade Alert, Fitch Solutions

Trade Agreements

Trade Updates

As a member of the EU, Hungary is part of the same trade agreements as its 27 peer states. The region negotiates and enters into trade agreements as a collective due to the single market nature of the union. In total, the EU has approximately 70 preferential trade agreements in place.

Hungary and India agreed to boost bilateral trade and investment during a meeting between the foreign ministers of the two countries in July 2016. Areas identified as priorities for cooperation included autos, construction, education, IT and, research and development. India is not a major trade partner of Hungary, but with the country heavily reliant on its European neighbours, investigating ties and opportunities with other states could help to diversify its trade flows and hedge against some systemic risks in the EU.

 

Multinational Trade Agreements

Active

  1. Hungary has been a member of the EU since May 1, 2004, adopting the EU's common external trade policy and measures. The EU is a political and economic union of 28 member states that are primarily located in Europe. Within the Schengen Area, passport controls have been abolished. A monetary union was established in 1999 and came into full force in; it is composed of 19 EU member states that use the euro currency. However, Hungary maintains its own currency – the forint.

  2. EU-Canada Comprehensive Economic and Trade Agreement (CETA): This was provisionally applied as of September 21, 2017, having been signed in October 2016. CETA is expected to strengthen trade ties between the two regions. The agreement is expected to boost trade between partners by more than 20%. Hungary expects CETA to improve trade in goods and services between the two countries while also boosting foreign direct investment (FDI). According to Hungarian authorities, USD11 billion in FDI has already arrived in Hungary from Canada, highlighting the importance of further market and trade liberalisation. CETA also opens up government procurement. Canadian companies will be able to bid on opportunities at all levels of the EU government procurement market and vice versa. CETA means that Canadian provinces, territories and municipalities are opening their procurement to foreign entities for the first time, albeit with some limitations regarding energy utilities and public transport.

  3. Europe Free Trade Association (EFTA): EFTA includes Switzerland, Norway, Liechtenstein and Iceland. The European Economic Area (EEA) unites the EU member states and the three EEA EFTA states (Iceland, Liechtenstein and Norway) into an internal market governed by the same basic rules. These rules aim to enable goods, services, capital and persons to move freely about the EEA in an open and competitive environment, a concept referred to as the four freedoms.

  4. EU-Turkey: The EU and Turkey are linked by a customs union agreement which came into force on December 31, 1995. Turkey has been a candidate country to join the EU since 1999 and is a member of the Euro-Mediterranean partnership. The customs union with the EU provides tariff-free access to the European market for Turkey, benefitting both exporters and importers. Turkey is the EU's fourth largest export market and fifth largest provider of imports. The EU is Turkey's largest import and export partner. Turkey's exports to the EU are mostly machinery and transport equipment, followed by manufactured goods. At present, the customs union agreement covers all industrial goods but does not address agriculture (except processed agricultural products), services or public procurement. Bilateral trade concessions apply to agricultural as well as coal and steel products. In December 2016, the EC proposed the modernisation of the customs union and the extension of the bilateral trade relations to areas such as services, public procurement and sustainable development.

  5. EU-Japan Economic Partnership Agreement (EPA): In July 2018, the EU and Japan signed a trade deal that promises to eliminate 99% of tariffs that cost businesses in the EU and Japan nearly EUR1 billion annually. According to the EC, the EU-Japan EPA will create a trade zone covering 600 million people and nearly a third of global GDP. The result of four years of negotiation, the EPA was finalised in late 2017 and came into force on February 1, 2019, after the European Parliament ratified the agreement in December 2018. The total trade volume of goods and services between the EU and Japan is an estimated EUR86 billion. The key parts of the agreement will cut duties on a wide range of agricultural products and seeks to open up services markets, particularly financial services, e-commerce, telecommunications and transport. Japan is the EU's second biggest trading partner in Asia after Mainland China. EU exports to Japan are dominated by motor vehicles, machinery, pharmaceuticals, optical and medical instruments, and electrical machinery.

  6. EU-Southern African Development Community (SADC) EPA (Botswana, eSwatini, Lesotho, Mozambique, Namibia and South Africa): An agreement between EU and SADC delegations was reached in 2016 and is fully operational for SADC members following the ratification of the agreement by Mozambique. The remaining six members of SADC included in the deal (the Democratic Republic of the Congo, Madagascar, Malawi, Mauritius, Zambia and Zimbabwe) are seeking economic partnership agreements with the EU as part of other trading blocs – such as with East or Central African communities.

 

Signed, Awaiting Ratification

  1. EU-Central America Association Agreement (Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, Belize and the Dominican Republic): An agreement between the parties was reached in 2012 and is awaiting ratification (29 of the 34 parties have ratified the agreement as of July 2019). The agreement has been provisionally applied since 2013.

  2. EU-Mercosur: The EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay) signed a trade deal on June 28, 2019, after twenty years of negotiations. The trade agreement for goods and services will cover nearly 25% of global GDP and almost 800 million people. The deal is expected to cut duties on EU exports to Mercosur by EUR4 billion annually and eliminate tariffs on 93% of Mercosur’s exports to the EU and 91% of EU exports to Mercosur states. The deal will also include access to public procurement contracts. Mercosur states will greatly benefit from increased access to the EU for agricultural goods, which has resulted in opposition to the deal by European farmers. European firms, especially those in the manufacturing and industrial sector, will have an advantage over other competitors after the removal of high tariffs.

 

Under Negotiation

  1. EU-Australia: The EU, Australia's second largest trade partner, has launched negotiations for a comprehensive trade agreement with Australia. Bilateral trade in goods between the two partners has risen steadily in recent years, reaching almost EUR48 billion in 2017, and bilateral trade in services added an additional EUR27 billion. The negotiations aim to remove trade barriers, streamline standards and put European companies exporting to or doing business in Australia on equal footing with those from countries that have signed up to the Trans-Pacific Partnership or other trade agreements with Australia. The Council of the EU authorised opening negotiations for a trade agreement between the EU and Australia on May 22, 2018.

  2. EU-United States (Trans-Atlantic Trade and Investment Partnership): This agreement was expected to increase trade and services, but it is unlikely to pass under United States President Donald Trump's administration against a backdrop of rising global trade tensions.

  3. EU-Vietnam FTA: In July 2018, the EU and Vietnam agreed on final texts for the EU-Vietnam FTA and the EU-Vietnam Investment Protection Agreement. As of July 2019, the final text of the agreement has been finalised and is awaiting signature and conclusion.

Sources: WTO Regional Trade Agreements database, European Commission, Fitch Solutions

Investment Policy

Foreign Direct Investment

Graph: Hungary FDI stock
 
Graph: Hungary FDI stock
 
Graph: Hungary FDI flow
 
Graph: Hungary FDI flow
 

Source: UNCTAD
Date last reviewed: July 12, 2019

 

Foreign Direct Investment Policy

  1. The Hungarian Investment Promotion Agency (HIPA) offers management consultancy services to address the needs of investors and is governed by the Ministry of Foreign Affairs and Trade. HIPA also acts as a mediator between business and government, preparing policy proposals to improve the business environment.

  2. Hungary's accession to the EU was accompanied by the tightening of legal protection for foreign investment, and the government has attempted to guide capital inflows towards targeted sectors such as manufacturing facilities, research and development, IT, automobiles, and tourism. The property rights of foreign investors are also guaranteed against expropriation or nationalisation, except in cases of national security, in which the private owner is entitled to fair compensation.

  3. The EU formally adopted region-wide legislation on the screening of FDI in February 2019, with implementation to range between May 2019 and November 2020. The new legislation will allow member states to screen FDI regarding critical infrastructure (physical or virtual); sensitive facilities and investments in land and real estate; critical technologies such as artificial intelligence, cybersecurity, quantum technology, nuclear technology and biotechnology; critical inputs (such as food or fuel); media (which threatens pluralism or the freedom thereof); and any services or products which may compromise data security. Hungary previously had no such rules, but the implementation of such oversight will bring it in line with practices of a number of EU peers – such as Germany and Poland.

  4. There are no legal restrictions on foreign ownership in any sector, and under the Foreign Investment Act of 1988, international companies are guaranteed equal treatment alongside Hungarian businesses, with full freedom regarding the repatriation of profits.

  5. Currently, foreign firms control 66% of the manufacturing sector, 90% of the telecommunications sector and 35% of the energy sector. The private sector currently produces about 80% of Hungary's economic output. Foreign investors interested in financial institutions and insurance companies must officially notify the government of their intentions, but do not need authorisation in advance.

  6. Under the Investment Act, companies incorporated in Hungary are permitted to purchase and own real estate to support their economic activities. Nevertheless, only private Hungarian or EU citizens resident in Hungary with a minimum of three years of experience working in agriculture or holding a degree in an agricultural discipline can purchase farmland, according to the 2014 Land Law. All others may only lease farmland.

  7. The Hungarian government regulates the prices of certain goods, setting upper and lower limits to which the private sector must adhere. Price-regulated sectors include energy and pharmaceuticals, and companies operating in these fields have suffered losses in cases where the government has been too slow to adjust upper limits or has failed to meet subsidy obligations, as in the case of medicinal goods and electricity.

  8. The Hungarian government has publicly declared that reducing foreign bank market share in the Hungarian financial sector and tightening regulations governing non-government organisations are key priority areas. Accordingly, several state-led initiatives over the past several years targeted the banking sector and reduced foreign participation.

  9. Regulations in 2015 obligated banks to retroactively compensate borrowers for interest rate increases on certain consumer loans. Increasing entry barriers in certain sectors could have undermined previous sunk-cost investments, contributing to a general sense of policy-induced uncertainty regarding the protection of intangible assets.

  10. Performance requirements, such as job creation or investment minimums, can be imposed as a condition for establishing, maintaining or expanding an investment. Hungary's rules and regulations regarding labour mobility are broadly in line with EU directives. Most non-EU citizens require a work visa and permit in order to enter and work in Hungary, which generally takes about a month to obtain. There is large amount of bureaucracy that businesses must contend with when trying to bring in foreign workers from non-EU states.

  11. As part of the country's EU accession, Hungary eliminated foreign trade zones. Although the Ministry of National Economy had plans to nominate customs-free zones, there currently seems to be little demand. Nevertheless, Hungary offers a well-developed incentive system for investors, which is anchored by a special incentive package for investments over a certain value-typically more than USD11 million. Administered by HIPA and managed by the Ministry of National Development, the incentive system is compliant with EU regulations on competition and state aid.

  12. In 2013 the government established free entrepreneurial zones in remote and underdeveloped regions of the country, which aim to promote economic growth and job creation. Businesses located in these zones will benefit from a lower qualification threshold and fewer stipulations for a range of tax incentives. Free entrepreneurial zones are open to all types of businesses, although the government will be more inclined to provide generous incentives for targeted industries, including manufacturing and research and development. Additional government aid incentives are available at varying rates depending on the location of investment.

Sources: WTO – Trade Policy Review, the International Trade Administration, United States Department of Commerce, Hungarian Investment Promotion Agency

 

Free Trade Zones And Investment Incentives

Free Trade Zone/Incentive Programme Main Incentives Available
The free entrepreneurship zone contains more than 900 settlements in the unprivileged areas of Hungary designated by the government and coordinated by the regional business development agency that is comprised of individual regions that are separated by public administration, borders and topographical lot numbers and are treated jointly for regional development purposes. Investors who establish one of the following centres or facilities stand to benefit from the incentive packages:

- Regional service centres

- Manufacturing facilities

- Logistics facilities

- Research and development facilities

- Bioenergy facilities

Investors who make tourism industry investments in any area also stand to benefit from incentive packages. These may consist of cash, training or job creation subsidies or tax allowances.

Sources: Hungarian Government websites, Fitch Solutions

Taxation – 2019
  • Value Added Tax: 27%
  • Corporate Income Tax: 9%

Sources: Hungary National Tax and Customs Administration

 

Important Updates to Taxation Information

  • Social security contributions made by employers have been reduced to 19.5% of an employee's gross wages (from 22% previously). The reduced rate decreases the burden of tax payments on business, increasing competitiveness. Furthermore, income derived from real estate rentals is no longer subject to the national 14% healthcare tax, benefiting employers and investors. 

  • As of January 1, 2018, the employer social charge rate has been further reduced from 22% to 19.5%. Consequently, the employers’ payroll expenses has been reduced by 2%. Also, the rate of healthcare tax has been reduced from 22% to 19.5% as of 2018, in line with the reduction of the employer social charge rate. As a result, public dues payable for business meals, corporate events and certain fringe benefits has been reduced from 43.66% to 40.71% in total.

 

Business Taxes

Type of Tax Tax Rate and Base
Corporate Income Tax 9%
Dividends 5% on net earnings (except distribution by companies in the oil and gas sector)
Capital Gains Tax 9%
Mines, energy producers and energy distribution system operators are subject to energy suppliers’ income tax 31%
Innovation contribution 0.3%
VAT 27%; for some goods and services, reduced rates of 18% and 5% are applicable

Sources: National sources, Hungary National Tax and Customs Administration
Date last reviewed: July 31, 2019

Foreign Worker Requirements

Localisation Requirements

Hungary's rules and regulations regarding labour mobility are broadly in line with EU directives. Most non-EU citizens require a work visa and permit in order to go and work in Hungary, which generally takes about a month to obtain.

 

Obtaining Foreign worker permits for skilled workers

There are certain requirements that businesses must meet when trying to bring in foreign workers from non-EU states. First, a workforce demand is required. The hiring company must advertise the job at the Hungarian Labour Office for a fixed period (around 15 days). This is to give unemployed Hungarian citizens a chance to apply for the position. Thereafter, a work permit may begin to be processed. Most work permits and working visas are issued for two years only. Both of these documents can be renewed to extend the stay in Hungary if the employee continues to fulfil the application requirements. Generally, the highest number of foreign workers employed with a work permit at the same time in the whole territory of Hungary cannot exceed the number of announced applications in an average month in the year before the year in question. The quota is set at 57,000 work permits in 2019.

 

Blue Card

The Blue Card is intended for the stay of a highly qualified employee. A foreigner holding a Blue Card may reside in Hungary and work in the job for which the Blue Card was issued or change that job under the conditions defined. High qualification means a duly completed university education or higher professional education which lasted for at least three years. The Blue Card is issued with a term of validity three months longer than the term for which the employment contract has been concluded; however, this is for a maximum period of two years. The Blue Card can be extended. One of the conditions for issuing the Blue Card is a wage criterion – the employment contract must contain gross monthly or yearly wage at least 1.5 times the gross average annual wage.

 

Visa/Travel Restrictions

Nationals of Canada, Australia and the United States intending to stay in Hungary for more than 90 days need to apply for a long-term stay visa, whereas EU nationals staying for longer than 90 days need only register with the immigration department. In addition, citizens of many other countries may travel to Hungary without a visa and may stay there for a maximum period of 90 days. For Hong Kong, this exemption applies only to Hong Kong passport holders.

 

Schengen Visa

Hungary is also part of the Schengen Agreement as of December 7, 2017, which has made traveling between member countries much easier and less bureaucratic. The Schengen visa and entry regulations are only applicable for a stay not exceeding 90 days. In the wake of the migrant crisis in Europe, the Schengen states have tightened controls at their common external borders to ensure the security of those living or travelling in the Schengen Area.

Sources: Hungarian Government websites, Fitch Solutions

Risks

Sovereign Credit Ratings


 
Rating (Outlook) Rating Date
Moody's Baa3 (Stable) 23/11/2018
Standard & Poor's BBB (Stable) 15/02/2019
Fitch Ratings BBB (Stable) 22/02/2019

Sources: Moody's, Standard & Poor's, Fitch Ratings

 

Competitiveness and Efficiency Indicators


 
World Ranking
 
2017 2018 2019
Ease of Doing Business Index
 
41/190 48/190 53/190
Ease of Paying Taxes Index
 
77/190 93/190 86/190
Logistics Performance Index
 
N/A 31/160 N/A
Corruption Perception Index
 
66/180 64/180 N/A
IMD World Competitiveness 52/63 47/63 47/63

Sources: World Bank, IMD, Transparency International

 

Fitch Solutions Risk Indices


 
World Ranking
2017 2018 2019
Economic Risk Index
 
N/A 36/202 33/202
Short-Term Economic Risk Score 69.4 71.5 67.5
Long-Term Economic Risk Score 69.2 69.8 71.3
 
Political Risk Index
 
N/A 69/201 72/202
Short-Term Political Risk Score 71.0 73.5 73.5
Long-Term Political Risk Score 71.4 70.2 70.2
Operational Risk Index N/A
 
 39/201 45/201
Operational Risk Score 63.1 64.3 62.7

Source: Fitch Solutions
Date last reviewed: July 31, 2019

 

Fitch Solutions Risk Summary

ECONOMIC RISK

Economic growth rates in Hungary will ease in the coming years but remain comfortably higher than in more developed EU states. Emerging from a protracted period of private deleveraging, the economy will be boosted by stronger consumer demand. The increasingly tight labour market and subdued FDI inflows will weigh on output. Gross external debt will remain high by regional standards, although the downward trajectory will ensure that it is sustainable in the medium term.

OPERATIONAL RISK

Investors in Hungary benefit from the country's relatively stable operating environment and a highly urbanised labour force with a strong skill base. As a member of the EU, Hungary offers open markets and an increasingly competitive corporate tax regime and its geographic location and strong overland transport links consolidate its position as a major sub-regional trade hub within Central and Eastern Europe. Over the medium term, increasing state intervention in the economy and concomitant policy uncertainty pose downside risks to the operational environment.

Source: Fitch Solutions
Date last reviewed: July 31, 2019

 

Fitch Solutions Political and Economic Risk Indices

Graph: Hungary short term political risk index
 
Graph: Hungary short term political risk index
 
Graph: Hungary long term political risk index
 
Graph: Hungary long term political risk index
 
Graph: Hungary short term economic risk index
 
Graph: Hungary short term economic risk index
 
Graph: Hungary long term economic risk index
 
Graph: Hungary long term economic risk index
 

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Economic and Political Risk Indices
Date last reviewed: July 31, 2019

 

Fitch Solutions Operational Risk Index


 
Operational Risk Labour Market Risk Trade and Investment Risk Logistics Risk Crime and Security Risk
Hungary Score 62.7 55.6 62.0 66.9 66.3
Central and Eastern Europe Average 62.1 57.5 63.5 66.3
 
61.2
Central and Eastern Europe Position (out of 8) 7
 
9 7 6
 
7
 
Emerging Europe Average 57.4 55.9
 
59.1 58.6
 
55.9
Emerging Europe Position (out of 28) 8
 
19 13 8
 
10
 
Global average 49.6 50.3
 
49.8 49.0 49.2
Global Position (out of 201) 45
 
68 54
 
42 46
 

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index

 

Graph: Hungary vs global and regional averages
 
Graph: Hungary vs global and regional averages
 
Country
 
Operational Risk Index Labour Market Risk Index
 
Trade and Investment Risk Index Logistics Risk Index Crime and Security Risk Index
Estonia 71.4
 
62.9
 
76.3
 
72.1
 
74.3
 
Lithuania 69.6
 
60.2
 
71.4
 
75.6
 
71
 
Czech Republic
 
69.5
 
60
 
67.8
 
73.7
 
76.5
 
Poland 68.9
 
58.4
 
69.3
 
75
 
72.8
 
Latvia 66.7
 
60.7
 
67.1
 
71.5
 
67.4
 
Slovakia 62.8
 
51.8
 
66.5
 
63.4
 
69.6
 
Hungary 62.7
 
55.6
 
62.0
 
66.9
 
66.3
 
Belarus 58
 
58.7
 
58.6
 
63.4
 
51.3
 
Russia 56.5
 
63.6
 
58.6
 
63
 
40.6
 
Moldova 48.7
 
41.7
 
51.7
 
52.2
 
49.3
 
Ukraine 48.3 58.5
 
49
 
52
 
33.6
 
Regional Averages 62.1
 
57.5
 
63.5
 
66.3
 
61.2
 
Emerging Markets Averages 46.9
 
48.6
 
45.4
 
44.7
 
46.1
 
Global Markets Averages 49.6
 
50.3
 
49.8
 
49
 
49.2
 

100 = Lowest risk; 0 = Highest risk
Source: Fitch Solutions Operational Risk Index
Date last reviewed: July 31, 2019

Hong Kong Connection

Hong Kong’s Trade with Hungary

 

Graph: Major export commodities to Hungary (2018)
 
Graph: Major export commodities to Hungary (2018)
 
Graph: Major import commodities from Hungary (2018)
 
Graph: Major import commodities from Hungary (2018)
 

Note: Graph shows the main Hong Kong exports to/imports from Hungary (by consignment)
Date last reviewed: April 2, 2019

 

Graph: Merchandise exports to Hungary
 
Graph: Merchandise exports to Hungary
 
Graph: Merchandise imports from Hungary
 
Graph: Merchandise imports from Hungary
 

Note: Graph shows Hong Kong exports to/imports from Hungary (by consignment)

Exchange Rate HK$/US$, average
7.76 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
7.83 (2018)

Sources: Hong Kong Census and Statistics Department, Fitch Solutions
Date last reviewed: April 2, 2019

 


 
2018
 
Growth rate (%)
 
Number of Hungary residents visiting Hong Kong 10,298 -0.8

 
2018
 
Growth rate (%)
 
Number of European residents visiting Hong Kong 1,961,448 1.7
 

Sources: Hong Kong Tourism Board, Fitch solutions
Date last reviewed: July 31, 2019

 

Commercial Presence in Hong Kong


 
2018
 
Growth rate (%)
 
Number of EU companies in Hong Kong 1,846
 
N/A
- Regional headquarters 415
 
- Regional offices 591
 
- Local offices 840
 

Source: HKTDC

 

Treaties and agreements between Hong Kong and Hungary

Double Taxation Avoidance Agreements (DTAs)

Hungary has a DTA and investment promotion and protection agreement with Mainland China, which it concluded on June 17, 1992. This entered into force in both countries on December 31, 1994.

A DTA between Hong Kong and Hungary was signed on May 12, 2010 and entered into force on February 23, 2011.

Sources: Hong Kong Internal Revenue Department, UNCTAD, Fitch Solutions

 

Chamber of Commerce or Related Organisations
 

The European Chamber of Commerce in Hong Kong

The European Chamber of Commerce creates business opportunities via its network of Chambers, business associations and government agencies.

Address: Room 1302, 13/F, 168 Queen’s Road, Central, Hong Kong

Email: info@eurocham.com.hk

Tel:  (852) 2511 5133

Fax: (852) 2511 6833

Source: The European Chamber of Commerce in Hong Kong

 

Hungary-Hong Kong Business Association

Email: laszlo.meszaros@hktdc.org

Tel: (36) 1 224 7766

Website: www.hhkba.hu

Please click to view more information.

Source: Federation of Hong Kong Business Associations Worldwide

 

Consulate General of Hungary in Hong Kong

Address: Suites 1208-09, 12/F, ICBC Tower, Three Garden Road, Central, Hong Kong

Email: mission.hgk@mfa.gov.hu

Tel: (852) 2878 7555

Fax: (852) 2878 7010

Source: Hong Kong Protocol Division Government Secretatiat

 

Visa Requirements for Hong Kong Residents

Hungary has been a member of the Schengen Area since December 21, 2007. The Consulate General of Hungary in Hong Kong does not issue Schengen visas; therefore, all Schengen visa applications are handled by the Netherlands Consulate General in Hong Kong. Residents of Hong Kong do not require a visa for the Schengen area for stays of up to 90 days.

Source: Consulate General of Hungary in Hong Kong

Date last reviewed: July 31, 2019

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