section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Hungary is an OECD high-income mixed economy with a very high human development index and skilled labour force with the 16th lowest income inequality in the world. Furthermore, it is the 9th most complex economy according to the Economic Complexity Index. The economy is the 57th-largest in the world (out of 188 countries measured by IMF) with $265.037 billion output and ranks 49th in the world in terms of GDP per capita by purchasing power parity. The employment rate was 68.3% in 2017; the employment structure shows the characteristics of post-industrial economies, 63.2% of employed workforce work in service sector, the industry contributed by 29.7%, while agriculture with 7.1%. Unemployment rate was 4.1% in 2017, down from 11% during the 2008 financial crisis.
  
  Hungary is part of the European single market which represents more than 508 million consumers. Several domestic commercial policies are determined by agreements among European Union members and by EU legislation. Hungary is an export-oriented market economy with a heavy emphasis on foreign trade, thus the country is the 36th largest export economy in the world. The country has more than $100 billion export in 2015 with high, $9.003 billion trade surplus, of which 79% went to the EU and 21% was extra-EU trade. Hungary has a more than 80% privately owned economy with 39.1% overall taxation, which provides the basis for the country's welfare economy. On the expenditure side, household consumption is the main component of GDP and accounts for 50% of its total use, followed by gross fixed capital formation with 22% and government expenditure with 20%.
  
  Hungary continues to be one of the leading nations for attracting foreign direct investment (FDI) in Central and Eastern Europe; the inward FDI in the country was $119.8 billion in 2015, while investing more than $50 billion abroad. As of 2015, the key trading partners were Germany, Austria, Romania, Slovakia, France, Italy, Poland and Czech Republic. Major industries include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism (with 12.1 million international tourists in 2014). Hungary is the largest electronics producer in Central and Eastern Europe. Electronics manufacturing and research are among the main drivers of innovation and economic growth in the country. In the past 20 years Hungary has also grown into a major centre for mobile technology, information security, and related hardware research.
  
  Large Hungarian companies are included in the BUX, the stock market index listed on Budapest Stock Exchange. Well-known companies include the Fortune Global 500 firm MOL Group, the OTP Bank, Gedeon Richter Plc., Magyar Telekom, CIG Pannonia, FHB Bank, Zwack Unicum and more. Besides this Hungary has a large portion of specialised small and medium enterprise, for example a significant number of automotive suppliers and technology start ups among others.
  
  Budapest is the financial and business capital, classified as an Alpha world city in the study by the Globalization and World Cities Research Network. Budapest is the primate city of Hungary regarding business and economy, accounting for 39% of the national income, the city has a gross metropolitan product more than $100 billion in 2015, making it one of the largest regional economies in the European Union. Budapest is also among the Top 100 GDP performing cities in the world, measured by PricewaterhouseCoopers.
  
  Hungary maintains its own currency, the Hungarian forint (HUF), although the economy fulfills the Maastricht criteria with the exception of public debt, but it is also significantly below the EU average with the level of 75.3% in 2015. The Hungarian National Bank is currently focusing on price stability with an inflation target of 3%. Hungary's corporate tax rate is only 9%, which is relatively low for EU states.