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Hungary as a market

Market information and Danish footprints

The Hungarian economy continue to produce positive figures, including decreasing unemployment, manageable low state budget and high economic growth during 2018 and 2019. In 2019, all major analysists expect high economic growth (see also separate section with statistics).

Hungary is a relatively open market, with more than 40 thousand foreign owned companies. These investments account for a large share of manufacturing, telecommunications, finance, retail and the energy sectors in Hungary.

Leading Danish brands include Abacus Medicine, Balyfa, Carlsberg, Coloplast, Danfoss, DSV, Grundfos, Hartmann, ISS, 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 15,000 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.