Hungary as a market

The Hungarian economy is on a path of slow recovery. Due to an effective monetary policy response, supported by declining commodity prices and a stricter fiscal approach in 2023, inflation has decreased rapidly. Meanwhile, the labour market and financial sector have shown resilience. The substantial current account deficit of 2022 has shifted to a surplus, and economic output is beginning to recover. Hungary is a relatively open market, with almost 14 thousand foreign owned companies present in the country. These investments account for a large share of manufacturing, telecommunications, finance, retail and the energy sectors in Hungary.

Leading Danish brands include Abacus Medicine, Hagens, Carlsberg, Coloplast, Danfoss, DSV, Grundfos, Hartmann, Jysk, Lego, Novo Nordisk, Nilfisk, Pandora, Rockwool, Tiger, Velux, Vestfrost, and Xellia.

What is the reason behind this success story? The answer is partly Hungary's central location and its excellent transport, logistics and info-telecommunications infrastructure. Features that makes Hungary a preferred destination among foreign investors. Another of Hungary's strengths is its well-qualified labour force at relatively low wage costs. Several incentives are available for those considering a sizeable investment. Hungary also offers a simple and low corporate taxation (European record low 9 percent), a flat personal income tax rate of 15 percent and a decreasing burden of contributions on the employers’ side. At the same time, continued growth and increase in public and private investments have produced a shortage in the labour market and is a challenge in several sectors.

Danish subsidiaries in Hungary employ around 16,000 people. Recently, more and more Danish companies focus on innovation and research – with examples of the local units of Foss A/S in Pécs, Xellia Pharma in Budapest or Grundfos in Székesfehérvár/Tatabánya.