Hungary economy at a glance

Latest figures for Hungary: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Hungary on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	1.6%	September 2026	1.3% August 2026
Core inflation (excluding food and energy)	3.7%	September 2026	3.8% August 2026
Real GDP growth (year on year)	1.5%	Q3 2026	1.7% Q2 2026
Policy rate (Magyar Nemzeti Bank)	5.50%	November 2026	5.50% October 2026
Unemployment rate	4.6%	September 2026	4.7% August 2026
10-year government bond yield	5.68%	September 2026	5.46% August 2026
Manufacturing PMI (HALPIM (Hungarian Association of Logistics, Purchasing and Inventory Management) manufacturing PMI)	53.1	October 2026	53.3 September 2026
Retail sales (year on year)	2.4%	August 2026	4.9% July 2026
Industrial production (year on year)	8.2%	September 2026	8.8% August 2026
House prices (year on year)	10.2%	Q2 2026	14.1% Q1 2026
Stock market (BUX (Budapest Stock Exchange))	145,257	October 2026

Questions and answers

What is the inflation rate in Hungary?

Hungary's annual inflation rate was 1.6% in September 2026, up from 1.3% in August 2026.

What is the interest rate in Hungary?

The Magyar Nemzeti Bank central bank base rate is 5.50% (as of November 2026). The next rate decision is due on 17 November 2026.

How fast is Hungary's economy growing?

Hungary's real GDP grew 1.5% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 1.9% in 2026 and 2.1% in 2027.

What is the unemployment rate in Hungary?

Hungary's unemployment rate was 4.6% in September 2026, down from 4.7% in August 2026.

What is Hungary's 10-year government bond yield?

Hungary's 10-year government bond yield averaged 5.68% in September 2026.

How much government debt does Hungary have?

Hungary's government debt is about 74.4% of GDP (latest annual figure), with a budget deficit of 4.7% of GDP.

What is Hungary's credit rating?

Hungary's sovereign credit ratings: S&P BBB-, Moody's Baa2, Fitch BBB.

What is the VAT rate in Hungary?

Hungary's standard VAT rate is 27% (2026 rules).

What is the corporate tax rate in Hungary?

Hungary's corporate income tax rate is 9.0% (2026 rules).

Who leads Hungary?

Hungary is led by Prime Minister Péter Magyar (Tisza; sworn in 9 May 2026, cabinet formed 13 May 2026); President Tamás Sulyok (head of state). Next election: Next parliamentary election due in spring 2030.

Outlook

Growth should pick up from a weak 2025 (0.5%): the IMF sees 1.9% in 2026 and 2.1% in 2027, the MNB 1.8% and 2.9%, and the 2027 budget assumes 2.4% next year. Unlocked EU cohesion and RRF funds, lower risk premia and a recovering car and battery sector support the outlook. The main downside risk is fiscal: a deficit of about 7.5% of GDP in 2026 under the excessive-deficit procedure, debt near 74–76% of GDP, and negative outlooks at all three agencies. The 2027 budget targets a 4.9% deficit, tighter than analysts expected, and its credibility will be tested at Moody's review on 20 Nov and Fitch's on 4 Dec. Other risks are energy-price spikes from the Middle East conflict and forint volatility, which could keep the MNB's easing cycle on hold at 5.50%.

Why Hungary matters for the world economy

Hungary is a key node in Europe's car and EV-battery supply chains. German carmakers (Audi, Mercedes-Benz, BMW) and Asian battery and EV makers (CATL, Samsung SDI, BYD) have large plants there, so its output and investment cycle tracks German industry and global EV demand, with Germany taking about 23% of its exports. The forint is one of the most volatile, high-beta CEE currencies, and Hungarian bonds are a bellwether for regional sovereign risk. The 10y yield fell by over 1.5pp after the April 2026 change of government. Politically, the change of government has eased Budapest's long standoff with Brussels, which matters for EU unanimity votes on Ukraine and sanctions, and is unlocking frozen EU funds. Its continued reliance on Russian oil and gas via pipeline keeps it exposed to supply disruptions and the 2026 energy shock.

Politics

Péter Magyar's Tisza party ended Viktor Orbán's 16-year rule in the April 2026 election. It won about 141 of 199 seats, a two-thirds supermajority that lets it change the constitution, and Fidesz-KDNP is now in opposition. The new government has worked with Brussels to unlock frozen EU money, front-loading RRF funds in August, and has set a goal of meeting the euro criteria by 2030. It says it inherited a much worse fiscal position and revised the 2026 deficit target to about 7.5% of GDP. Its first budget, presented on 19 October, aims for a 4.9% deficit in 2027 through a wealth tax, higher taxes on big firms and energy companies and about HUF 1.5tn of spending cuts, and for below 3% by 2030. There is also friction with Orbán-era appointees such as the president and the chief prosecutor.

System: Unitary parliamentary republic.

Economy and taxes

GDP: US$246 billion
Population: 9.5 million
Government debt: 74.4% of GDP
Budget balance: −4.7% of GDP
Current account: 2.3% of GDP
Exports: 72.6% of GDP
Main exports: Cars and vehicle parts (Audi, Mercedes-Benz, BMW, Suzuki), EV batteries and components, electrical machinery and electronics, pharmaceuticals, food and agricultural products
Top export markets: Germany (23.4%), United States (6.8%), Romania (5.7%), Poland (4.9%), Italy (4.8%)
IMF growth forecast: 1.9% in 2026, 2.1% in 2027
IMF inflation forecast: 1.9% in 2026, 2.8% in 2027
Currency: HUF
Freelancer tax: A self-employed person earning the average wage (HUF 8,460,000 a year) pays about 41.2% of it in income tax and social contributions (2026 rules)
Top income tax rate: 15.0%
Gold reserves: 110.0 tonnes (September 2026)
Energy self-sufficiency: 39% (2024)

Recent news

2 November 2026 Hungarian factory growth eases slightly as PMI slips to 53.1 HALPIM via Trading Economics
The HALPIM manufacturing PMI dipped to 53.1 in October from an upwardly revised 53.3, a nine-month high. Output and hiring picked up, but new orders grew more slowly and purchase prices rose much faster.
30 October 2026 Hungary's economy barely grows in the third quarter KSH via Trading Economics
A preliminary KSH estimate showed GDP up just 0.1% on the quarter, slowing from 0.6% in the second quarter and well below the 0.4% analysts had expected.
28 October 2026 Hungary's medium-term plan targets euro readiness by 2030 and a sub-5% deficit in 2027 Daily News Hungary
The Finance Ministry's 2027-2030 programme aims to bring the deficit below 5% of GDP next year by cutting wasteful state spending, and to meet the conditions for joining the euro by 2030. It sees growth rising from 1.7% this year to 3.1% in 2030.
28 October 2026 Hungary cuts its EU defence-loan request to €5.4bn from €17.4bn Daily News Hungary
The European Commission approved Hungary's revised request under the EU's SAFE defence-loan scheme, about a third of the amount sought by the Orbán government. The new government said borrowing must match the country's ability to repay, after the Commission raised procurement concerns.
20 October 2026 MNB holds its base rate at 5.50% for a second month Magyar Nemzeti Bank
The central bank kept rates unchanged, citing high energy prices, rising long-term yields and global uncertainty. It expects inflation to average 1.8% in 2026 and 3.1% in 2027 and gave no signal on when cuts might resume.
19 October 2026 Hungary's first Tisza budget targets a 4.9% deficit in 2027 Reuters via Capital.com
PM Péter Magyar's draft cuts the deficit from about 7.5% of GDP this year, using a wealth tax on fortunes above HUF 1bn, higher taxes on big firms and energy companies and HUF 1.5tn of spending cuts. Analysts polled by Reuters had expected 5.3%.

Headlines and summaries are compiled daily from the linked reports with AI assistance.