3. INRTODUCTION
Official name: Hungarian Republic
Location: East-Central Europe
Area: 93,030 square km
Population: 10,197,119
Density of population: 108 person/square km, 63%of
population live in cities
Capital: Budapest , area of 525 Km2 (1,775 million
inhabitants)
Language: Hungarian / Magyar
Administration: 19counties, 23 towns with county rights
Length of borders: 2246 Km
Number of neighboring countries: (borders with Austria
, Slovakia , Ukraine , Romania , Serbia , Croatia , Slovenia )
4. POLITICS
Political Conditions
President: Pal Schmitt
Prime Minister: Viktor Orban
Minister of Foreign Affairs: Janos Martonyi
Ambassador to the United States: Gyorgy Szapary
Ambassador to the United Nations: Csaba Korosi
Form of government: Parliamentary Republic
A new constitution was adopted on 18 April 2011, which
will enter into force on 1 January 2012 upon its Signing
by President Schmitt on 25 April 2011.
5. Economics
Hungary GDP
Hungary Gross Domestic Product is worth 130 billion
dollars or 0.21% of the world economy, according to the
World Bank.
Hungary GDP Growth Rate
The Gross Domestic Product (GDP) in Hungary expanded
0.5 percent in the third quarter of 2011 over the previous
quarter.
Sector wise GDP
Agriculture: 2.4%, Industry: 37.3%, Services: 60.3% (2011
EST.)
6. Economics
Hungary Interest Rate
The benchmark interest rate in Hungary was last
reported at 7 percent. In Hungary, interest rates
decisions are taken by the Monetary Council of the
Hungarian National Bank
Hungary Inflation Rate
The inflation rate in Hungary was last reported at 4.1
percent in December of 2011. From 1992 until 2010, the
average inflation rate in Hungary was 12.01
Hungary GDP per capita
The GDP per capita in Hungary was last reported at 5629
US dollars in December of 2010, according to the World
Bank.
7. Economics
Hungary Industrial Production
Industrial Production in Hungary expanded 3.5
percent in November of 2011.
Hungary Unemployment Rate
The unemployment rate in Hungary was reported at
10.6 percent in September of 2011 to November of
2011 period. From 1999 until 2010, Hungary's
Unemployment Rate averaged 7.13 percent
8. Social
Hungary Population
The total population in Hungary was last reported at 10.0
million people in 2011 from 10.0 million in 1960, changing 0
percent during the last 50 years.
Ethnic groups:
Hungary include Magyar (nearly 90%), Romany, German,
Serb, Slovak, and others.
Religion:
majority of Hungary's people are Roman Catholic; other
religions represented are Calvinist, Lutheran, Jewish, Baptist,
Adventist, Pentecostal, and Unitarian.
Language:
Hungarian & Magyar are the predominant language.
9. Social
Age structure
0-14 years: 14.6% (male 767,824/female 721,242)
15-64 years: 68.7% (male 3,361,538/female 3,444,450)
65 years and over: 16.7% (male 622,426/female
1,058,582)
Literacy
Definition: age15and over can read and write
Total population: 99.4%
Male: 99.5%
Female: 99.3%
10. Social
Festivals
In January and February Budapest International Circus
Festival attracts thousands of overseas visitors .
March or April, Budapest’s own Titanic International
Film Festival comes to town.
The Spring Festival, at the end of March,
The Autumn Music Festival, held over ten October days,
The country also has a long tradition of celebrating
Christmas during December
11. Technological
National Office for Research and Technology (NKTH) is a government
office responsible for the Hungarian Government's science, technology and
innovation policy. NKTH has the following responsibilities and missions:
Elaborating the government strategy in the field of research, technology
development, and innovation,
Forming the means and tools for the R&D and innovation policy at
government level,
Preparing documents concerning the national science and technology
policy,
Representing Hungarian interests in international and EU S&T affairs,
Co-coordinating the activity of the Research and Technology Innovation
Fund,
Supervising the Agency for Research Fund Management and Research
Exploitation,
Raising public understanding and awareness in research and innovation.
12. Technological
Recent technological developments in Hungary
The new technology developed by Cellum allows using
mobile telephones as MasterCard bank cards in Hungary.
Hungary is the first country in Europe to implement the
new technology.
Development in the field of renewable resources
The Hungarian National Renewable Action Plan has
targeted to increase the share of renewable energy sources
to 147% until 2020.
13. Technological
Norwegian– Hungarian robot romance goes global
A Norwegian–Hungarian robot technology project for the
health care sector and small- and medium sized enterprises
has received global attention. The project celebrated its
successful achievements in Budapest in May
MNT-ERA.NET Support Programmes
Name of initiative/program: ERANET_HU_09
Programme owner (ministry): National Office for
Research and Technology
The programme aims at enhancing the competitiveness of
the economy and improving the sustainability of
development by promoting application-oriented, strategic
research and development in the field of state-of-the-art
technologies.
14. Legal
Taxation
Corporate income tax
Corporate tax is set at 19% (tax base is profit before taxes) and tax
payable may be reduced by various tax incentives.
Corporate tax can be reduced to 10% for the sum of a company's tax
base that does not exceed HUF 50 million if:
corporate tax benefits are not effected
at least one person is employed
employees are paid at least double the minimum wage on average
the company is not subject of a labour law penalty
VAT
Rates of VAT: The general rate is 25% applied to most products
and services (18% is applied to diary and bakery products, the
supply of district heating to households is currently taxed at 25%)
15. Legal
Personal income tax
Hungary follows a flat-rate tax model. all taxpayers
are subjected to a 16 percent personal income tax
regardless of income level.
Local Taxes
Building tax
Land tax
Communal tax
Local business tax
16. Legal
Labor Law in Hungary
Contract of work
The contract must be set out in writing
Compulsory contents of the contract of employment:
name and designation of the parties
agreement on the employee’s job description
on his/her basic salary
and on the site at which work is to be carried out
17. Legal
Working hours
In Hungary full-time work involves eight hours’ work a day,
and 40 hours a week. Regulations on employment or the
agreement of the parties may establish longer working hours
(though not exceeding 12 hours a day and no more than 60
hours a week).
Minimum wages
The minimum wages in Hungary is since 1. 1. 2009 the
amount 71 500 forint (EUR) per month.
Holiday
up to the age of 25: - 20 working days
from the age of 25 :- 21 working days
up to the age of 31 :- an additional working day every three years
up to the age of 45 :- an additional working day every two years
from the age of 45 :- 30 working days
18. Environmental
Environment Regulations
In Hungary environmental protection matters have
been managed by the Ministry of Environmental
Protection and Water (Ministry) since 1988
The Ministry is responsible for the development of
environmental policies and for international co-
operation
The effective day-to-day management of
environment-related matters is mostly carried out by
the regional organizations (agencies) of the Ministry
19. Environmental
The main, general environmental protection rules
are laid down in Act LIII of 1995 on the General
Rules of Environmental Protection (Environment
Act).
According to section 68 of the Environment Act,
prior to the commencement of activities that have or
may have a significant impact on the environment,
an environmental impact assessment must be
carried out
