Due to the most recent changes and developments, the economic growth in Hungary stepped into a balanced stage and it is on a sustainable growth path. The vulnerability of the country decreased dramatically since 2010, and based on the disciplined fiscal policy, the sustainably low budget deficit, decreasing debt ration, phasing out of FX loans as well as many other accomplishments, all three major credit rating agencies upgraded Hungarian government bonds to investment grade.
GDP in Hungary increased by 2 % in 2016, an outstanding figure within the European Union (Eurozone GDP growth was 1,7% last year) despite the lower volume of EU funding absorbed by the economy. Hungary’s GDP is currently 10 % higher than its 2010 level.
Hungary’s debt-to-GDP ratio has continued to decline, and it may fall to below 74 percent in 2017. The composition of Hungary’s government debt has also improved: the share and volume of forex debt held by non-residents have both declined significantly.
The government's economic policy focuses on the encouragement of value-creating work, as well as the strengthening of the manufacturing industry (in particular the importance of gross value creation). The contribution ratio of industry to the total GDP is around 27 %.
Hungary’s economic growth is export-oriented. In 2016 Hungary succeeded in breaking all previous foreign trade records: the Hungarian economy produced its highest ever level of exports and succeeded in achieving its highest ever foreign trade surplus. Hungarian exports increased by 3%, reaching 93,3 Billion euros. Never before in the history of the Hungarian economy had a foreign trade surplus of 10 billion euros been successfully realized. (9,9)
In 2016 the Hungarian investment promotion agency (HIPA) successfully managed 71 FDI projects with an investment volume of 3,2 billion euros that will result in 17.600 new jobs. (In 2015 67 FDI projects with 13,000 new jobs.)
Besides the personal income tax rate being 15%, Hungary also introduced a flat tax in corporate income tax rate at 9% thus making Hungary the second most competitive country in terms of taxes on corporate turnover among OECD countries, trailing only top- ranked Switzerland.