Hungary is a central European country well-known for its diverse culture in music. Throughout history, Hungary has stayed distinct due to its ethnic migrations.
Hungary is also popular for its tourism sector with some of the most famous spas and baths unlike any other. Hungary has developed its economy around exports; however, there is a shortage of skilled labor across various sectors and unemployment amongst youths. These challenges are opportunities that can be fulfilled with local and global investments.
Hungary produces important products like wheat, corn, potatoes, dairy products, etc., and is rich in natural resources. Mining, construction materials, textiles, and motor vehicles are a few of the key industries.
Overview of Hungary
Hungary has been one of the most visited tourist destinations in the past decade, with its popular natural hot springs, immaculate mountains, and world heritage sites. Hungary continues to provide a wide array of opportunities to its citizens and expatriates from all across the globe. Prominent sectors have continued to evolve even in the face of challenges presented by the Covid-19 pandemic, making this country a hub for future business prospects and investments.
Population: Hungary has a population of over 9 million, with diverse ethnic groups like German and Romani. Hungarian is the most spoken language, followed by English, German, Russian, Romanian, and French.
GDP: The GDP in Hungary was worth 160.97 USD billion according to the statistics of 2019, and 0.13% is the value of Hungary regarding the world economy.
Hungary portrays immense potential through key industries like textile, food processing, and agriculture. With a low unemployment rate of 4.4%, job security is guaranteed across various sectors. Hungary is a tax-friendly country with no housing and land tax, giving opportunities to investors and businesses to expand their infrastructure.
Foreign Direct Investment has played a huge role in modernizing industries over the years; this has created jobs and boosted the country’s economic growth.
Hungary has managed to stay ahead of the competition through market awareness of the challenges posed by the Covid 19 pandemic. Hungary has plans to boost operational efficiency and diversify various sectors of its market. The retail market size is estimated to reach around 1.7 USD million by 2021.
A Brief Glimpse of Industries
- Medical Technologies: Hungary is a world leader in nanotechnology, molecular chemistry, and biotechnology services. In Hungary, medical equipment suppliers are EU-based manufacturers; this provides a wider scope for global companies and investors. With over 120,000 employees in the healthcare sector, Hungary is an export-driven manufacturer of medical supplies and equipment. Through technological advancements, Hungary manufactures medical devices that are exported across the world.
- Consumer Electronics and E-Commerce: Hungary is targeting its underdeveloped IT infrastructure and educational institutions to grow its e-commerce sector. Online sales and transactions have surpassed their previous estimates with the challenges posed by the pandemic, creating more opportunities for local and global businesses.
- Franchising: Franchising has been a part of Hungary’s history for over 30 years. With multinational food chains like McDonald's, Kentucky Fried Chicken, Burger King, etc., the scope of more multinational chains investing in Hungary has increased exponentially. There are approximately 350 companies, 50% of them are foreign-owned. With around 20,000 franchisees and over 100,000 employees, this sector promises growth prospects that rival other countries. Local franchises with various services have also increased over the years; hair salons, pharmacies, bakeries, and real estate chains are a few of the top contenders. However, there are talent gaps regarding the delivery of goods and services. These gaps present further opportunities for businesses and investors.
Cost of Renting
- 125,000 HUF/Month (414 USD) for a two-bedroom apartment (Budapest)
- 53,000-107,000 HUF/Month (176-355 USD) in the Southern Regions of Hungary
- 194,356 HUF/Month (645 USD) with utilities in the winter
- 171,176 HUF/Month (568 USD) with utilities in the summer
Cost of Living
The average cost of living for a single person is estimated at around 169,578 Hungarian Forint/Month (HUF) (572 USD).
The average cost of living in popular cities of Hungary is -
- 181,640 HUF/Month (612 USD) for Budapest
- 186,993 HUF/Month (631 USD) for Eger
- 180,177 HUF/Month (608 USD) for Szeged
- 208,922 HUF/Month (705 USD) for Debrecen
The average monthly salary in Hungary is around 493,000 HUF (1,663 USD). These include housing, transport, and other work benefits specific to the type of job.
- Minimum Salary – 125,000 HUF/Month (421 USD)
- Median Salary – 523,000 HUF/Month (1,764 USD)
- Average Hourly Wage – 2,840 HUF (9.58 USD)
Salary Structure for Various Roles
Regarding Labor Law, the Hungarian legislation functions with the guidance of the European Legislation. In the event of a labor dispute, the court usually protects the employee’s rights, outlined by the Labor Code, collective bargaining agreements, and employment contracts.
Fixed Term Employment and Indefinite Term employment usually sum up the relationship between the employer and employee regarding any contract. A written contract is an absolute must. It is the employer’s responsibility to set the terms and mention them in writing.
Employee benefits are provided by most of the jobs in Hungary. Many companies have made it mandatory to provide basic benefits.
- 10,000 HUF/Month (33.76 USD) Food Voucher
- School Vouchers
- Local transport season ticket
- Pension Fund Additions
How Can Skuad Help You with Hiring in Hungary?
Hungary provides many opportunities for investors, businesses, and expatriates wishing to settle in this beautiful country. Navigating through these opportunities may seem overwhelming, but not anymore. Skuad helps to facilitate businesses all across the globe. They act as the legal employer for organizations looking to hire in Hungary, thereby bridging the talent gap in various countries. Connect With Skuad Experts today!