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The Economy of Hungary

Demography, Emigration and Family Policy

Hungary's population is shrinking, prompting generous tax breaks and loans for families, though emigration of young workers remains an issue.

Fewer people, more policy.

Decline

The population has fallen by around a million since 1990.

Incentives

Tax exemptions for mothers, cheap loans and housing subsidies for larger families.

Emigration

Many young Hungarians work in Western Europe.

Results

Fertility has changed little, and critics question the cost-effectiveness.

A family loan

A couple gets a subsidised loan that is partly forgiven as they have children.

Assuming cash incentives quickly change birth rates

Effects are modest.

Key takeaways
  • The population is shrinking.
  • Family benefits are generous.
  • Emigration continues.
  • Results are debated.
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