From the Austro-Hungarian Empire, through the rule of the communist Soviet Republic to its liberation, Hungary has experienced a turbulent history and now retains the status of a liberal democracy. Though the political outlook is somewhat uncertain due to its increasingly authoritarian right-wing leadership, economic growth is steady as Hungary is committed to fiscal discipline.
A gateway to the Central and Eastern Europe region, EU member Hungary offers an access point to a common market of over 500 million people. Having capitalised on this strategic location in the heart of Europe, Hungary is now a manufacturing, services and logistics base with efficient and modern infrastructure. The economy offers foreign investors encouraging tax rates, a sound banking system, and a balance of low labour costs with high quality. Hungary is a fast-developing nation whose market would be a wise investment choice, considering the growing consumer industry and government incentives available to overseas firms.
While Hungary scores within the top fifty in the Ease of Doing Business rankings, its results are often mixed with disparities in the different categories covered by the report as well as its different city locations. Therefore, it is important to understand the implications of these indicators when planning to extend business into the country. The main financial risk of doing business in Hungary relates to external global economic patterns as its small open economy is easily damaged by international affairs. Awareness of bribery is also necessary, as perceptions of corruption remain high. Meanwhile, the language barriers can hinder business dealings, particularly when meeting with smaller companies.
World Business Culture is an invaluable source of information on how to negotiate the logistics of doing business in Hungary and can help to ensure the success of businesses entering into this market.