Hungary - Country Commercial Guide
Market Opportunities

Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.

Last published date: 2021-11-19

Hungary maintains an open economy and its high-quality infrastructure and central location are features that make it an attractive destination for investment. Despite challenges in the local business environment, Hungary remains an attractive market for U.S. investment and exports.  Top reasons for doing business in Hungary include:

  • One of the fastest growing economies in the European Union.
  • Central location considered to be the gateway to Central/Southeast Europe.
  • Well-educated and trained workforce.
  • Supply chain opportunities in manufacturing, automotive and electronics industries.
  • Government emphasis on innovation and knowledge-based technologies.

EU funding through 2020 has driven Hungarian growth as it has been used for more than 60,000 projects to improve telecommunications, energy and highway infrastructure.   As part of the National Development Plan (2014-2020), Hungary allocated approximately USD 33 Billion to projects ranging from tourism and infrastructure development to healthcare and environment protection. Hungary will be given EUR 52.8 Billion (USD 61.1 Billion) from the central budget in the next EU budget cycle (2021-2027) focusing on increasing Hungary’s competitiveness in both economic and social terms.  An ambitious Europe needs an ambitious budget with six main objectives: to enhance the productivity and innovation capacity of Hungarian SMEs to become key players in international economic competition; to increase employment rates and improve productivity and employment conditions; to invest in infrastructure which contributes in particular to enhancing competitiveness; to increase cross-border cooperation with neighboring regions; to give research, development and innovation a central role; and to facilitate the widespread use of renewable energy and encourage the transition to a greener, low-carbon industry, leading to a circular economy to fight climate change.

The government’s goal is to provide clean, smart and affordable energy for consumers. In addition, its main objectives are to strengthen security of the energy supply, transform the energy sector to become climate friendly, and stimulate innovation opportunities of economic development importance. A further goal is that most of Hungary’s electricity is produced from two sources: nuclear and renewable (primarily solar power plants). By using solar and nuclear energy together, by 2030, 90% of Hungary’s electricity production will be carbon-free. By 2040, Hungary’s electricity imports will fall from the current average of over 30% to below 20%.

In addition, Hungary aims to reduce greenhouse gas emissions by at least 40% by 2030 compared to 1990 levels. Hungary has also committed to increasing the current 14% share of renewable energy to at least 21% by 2030.  Greening transportation is key to achieving climate goals. Hungary is at the forefront of developing electric mobility in the region, with 672 charging stations nationwide and over 14,000 green license plates on the roads (2019).  For instance, ZalaZONE is a PPP project and is a proving ground for classic vehicle tests as well and connected & autonomous mobility solutions. The zone is located in south-west Hungary and is a collaboration between Austria, Slovenia, and Hungary. The proving ground was completed in 2021 and is an optimal test environment for cars in development and their communication technologies on multiple levels, allowing testing from concept to the end product. A Zala Drone section will be added to the facility 2021.