COUNTRY NAME-HUNGARY

1) General economic Scenario 

According to the Economic Complexity Index, Hungary's economy is a high-
income mixed economy that is ranked ninth in the world. Hungary is a member
of the Organization for Economic Cooperation and Development (OECD) with
a very high human development index and a skilled labor force, as well as the
world's 13th lowest income inequality. The Hungarian economy is the world's
57th largest, with $265.037 billion in annual output, and ranks 40th in terms of
GDP per capita measured by purchasing power parity. Hungary has an export-
oriented market economy with a strong emphasis on foreign trade; as a result,
the country is the world's 35th largest export economy. In 2015, the country's
exports exceeded $100 billion, with a trade surplus of $9.003 billion, of which
79 percent went to the EU and 21 percent went to non-EU trade. Hungary's
productive capacity is more than 80% privately owned, with 39.1% of total
taxation funding the country's welfare economy. On the expenditure side,
household consumption is the most important component of GDP, accounting
for 50% of total GDP, followed by gross fixed capital formation (22%), and
government expenditure (20%). Due to severe economic difficulties, Hungary
was forced to seek IMF assistance in the amount of €9 billion in 2009.

2) Industry Overview 
In the vehicle industry, more than 90 percent of companies employ at least 250
people. The vehicle industry employs over 700 suppliers. Hungary is home to
40 of the world's top 100 direct vehicle industry suppliers. Bosch, Continental,
and Denso are among the largest. The Audi factory intends to expand its current
9600 positions by 2100 in the long run. Audi also employs an additional 15,000
people through its suppliers. The Suzuki factory employs 3100 people and
employs another 20-30 thousand through its 330-340 Hungarian part suppliers.
Government regulatory system that is favorable (tax credits and non-refundable
loans) Through the close collaboration of market participants and educational
institutions, a dual educational program is being developed.
This dual educational program became available in 26 institutions during the
2017/2018 academic year, allowing more than 50 thousand students to
participate. The number of market operators who have joined forces has nearly
doubled to nearly 600. Artificial intelligence and self-driving cars are getting a
lot of attention. Investments by the government in the development of self-
driving cars.
3)Labor Force
There are several sources of labor market data, including the labor force survey,
which collects data on the population's economic activity (unemployment,
employment), as well as institutional data collections and administrative data,
which can be used to illustrate, for example, the characteristics of earnings
hours worked, average staff number, job vacancies, labor costs, and strike
events. The statistical domain also includes the computation of the real wage
index, as well as the publication of minimum wage and guaranteed minimum
wage data. The average month-end number of jobseekers registered by the
National Employment Service (NFSZ) in the fourth quarter of 2020 was 297
800, representing a significant increase over the same quarter the previous year.
In the fourth quarter of 2020, 8.2 percent of job seekers were seeking their first
job. When compared to the fourth quarter of 2019, the number of first-time job
seekers increased slightly. 39.1 percent of all jobseekers had completed all eight
years of primary school, 22.7 percent had graduated from a vocational or skilled
workers' training school, another 28.1 percent had passed the secondary school
leaving examination, and 7.6 percent had a college or university degree. The
proportion of first-time job seekers with only primary education (8 forms or
less) was 38.4 percent, 41.3 percent had passed the secondary school leaving
examination, and 6.0 percent had obtained a college or university degree.

By the end of the fourth quarter of 2020, labor offices had received notification
of 13 000 collective redundancies. The number of redundancies announced
tripled compared to the same period the previous year.

4)Fiscal conditions 
One of the factors contributing to subnational fiscal crises and debt crisis
management tools. It is not always possible to distinguish between trigger
events and the underlying causes of subnational fiscal crises. To aid in the
prevention of new crises, it is necessary to identify the most important
fundamental factors that can contribute to subnational fiscal crises. The
indebtedness and consolidation of the Hungarian subnational sector are
examined in light of international experiences. The factors that distinguish the
Hungarian subnational crisis and its management are identified. Hungary is in
the post-Soviet region, and its transformation was aided by its accession to the
European Union. Nonetheless, it, like the other Central European countries, was
marked by specific anomalies. Decentralization, for example, far exceeded the
EU average, reducing the sector's effectiveness. Furthermore, in addition to the
corporate sector and the central government, households and municipalities in
Hungary incurred foreign currency debt, posing significant solvency and
macroeconomic risks.

5)Capital markets 
The Hungarian Stock Exchange, which preceded today's Budapest Stock
Exchange (BSE), was founded in 1864 and ranked among Europe's top
exchanges until 1948. After the fall of communism in 1990, it was quickly
revived, with 60 IPOs between 1990 and 1998. Despite significant economic
growth, the annual number of listings has remained stagnant, leaving Hungary
far behind its Western European counterparts.
Although Hungary has a long-standing stock exchange, the BSE is the second
largest in Central and Eastern Europe in terms of capitalization and liquidity.
Firms in these sectors tend to grow large enough to qualify for an IPO in
Hungary. The central bank and the stock exchange are increasingly trying to
encourage more companies to go public. The Budapest Stock Exchange (BSE)
is Hungary's sole stock exchange. Furthermore, it is Hungary's only "regulated
market" as defined by the EU Directive on Markets in Financial Instruments.

6)Taxation System 
In Hungary, taxes are levied by both the national and local governments. In
2017, tax revenue in Hungary accounted for 38.4 percent of GDP. The income
tax, Social Security, corporate tax, and value added tax are the most important
revenue sources, all of which are applied at the national level. Local taxes
account for only 5% of total tax revenue, compared to the EU average of 30%.
In Hungary, income tax is levied at a flat rate of 15%. [4] A tax allowance is
given in the form of a family allowance, which is calculated by multiplying the
allowance by the number of "beneficiary dependent children." The allowance
for one or two children is HUF 62,500 per child, and for three or more children,
it is HUF 206,250 per child. The allowance may be divided among spouses or
life partners.
As of January 2012, the standard rate of value added tax is 27 percent, the
highest in the European Union. Most medicines and some food products are
taxed at 5%, while internet connections, restaurants and catering, dairy and
bakery products, hotel services, and admission to short-term open-air events are
taxed at 18%. Corporate taxation was unified in January 2017 at a rate of 9%,
the lowest in the European countries.
LINKS.

https://www.files.ethz.ch/isn/140283/064-1.pdf

https://hcb.hu/documents/prod/Hungarys-industry-overview.pdf