The Economy of Hungary
Transition and Foreign Investment
After 1989, Hungary privatised quickly and attracted large foreign investment, becoming a car and electronics manufacturing hub.
Opening up.
Privatisation
State firms, banks and utilities were sold, often to foreign investors.
FDI
Multinationals built factories, drawn by skilled workers and low costs.
Audi
The Győr plant is one of Europe’s biggest engine factories.
Dual economy
Foreign-owned exporters are more productive than domestic firms.
An export plant
A German-owned factory ships cars and engines across Europe.
Ignoring the gap between foreign and domestic firms
Productivity differs sharply.
Key takeaways
- Privatisation was rapid.
- FDI transformed industry.
- Audi Győr is major.
- A dual economy emerged.
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