IMD World Competitiveness Booklet 2020

COMPETITIVENESS TRENDS - OVERALL HUNGARY

OVERALL PERFORMANCE (63 countries)

BASIC FACTS Capital Land area (square km '000)

Rank

Budapest

2016 2017 2018 2019 2020

93 2019

46

47

47

47

290.660 2019 9.77 2019 161.0 2019 34,359 2019

Exchange Rate (per $)

52

40

Population - market size (millions)

CHALLENGES IN 2020 Growing unemployment, especially in the SME sector, will contribute to deteriorate the earlier favorable macro numbers. • Growing unemployment, especially in the SME sector, will contribute to deteriorate the earlier favorable macro numbers. • Because of the worsening deficit and debt data insufficient resources will be available for education and R&D. • Disturbed supply chains will return to normal operations slowly, causing difficulties to suppliers and employees. • Social capital/trust will be damaged causing difficulties for restarting services. • Brain drain will increase to the West for better paid jobs.

49

Gross Domestic Product (GDP) (US$ billions)

36

GDP (PPP) per capita (US$)

4.9 2019 3.37 2019 3.50 2019 4.59 2019 -0.80 2019 88.7 2018 3.78 2019

6

Real GDP growth (%)

50

Consumer price inflation (%)

13

Unemployment rate (%)

41

Labor force (millions)

42

Current account balance (% of GDP)

45

Direct investment stocks inward ($bn)

National University of Public Service, Competitiveness and Fiscal Provided by: Prof. Dr. Magdolna Csath, Research Professor, National University of Public Service, Competitiveness and Fiscal Stability Research Group

12

Direct investment flows inward (% of GDP)

COMPETITIVENESS LANDSCAPE

Economic Performance

Government Efficiency

Business Efficiency

Infrastructure

Domestic Economy

International Trade

International Investment Employment Prices

Public Finance

Tax Policy

Institutional Framework Business Legislation

Societal Framework

Productivity & Efficiency Labor Market Finance

Management Practices

Attitudes and Values

Basic Infrastructure

Technological Infrastructure Scientific Infrastructure

Health and Environment Education

12

18

20 19

34

36 39

40

41

43 43

44 45

44

45

49

51

60 59

61

PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (40 countries)

POPULATIONS < 20 MILLION (34 countries)

2016 2017 2018 2019 2020

2016 2017 2018 2019 2020

30

31

31

26

32

27

27

27

35

30

74

IMD WORLD COMPETITIVENESS BOOKLET 2020