Hungary is a slowly emerging economy in today’s world. It has seen a lot of turbulence in its economy especially because there the government there was a communist rule in the country right down to the year 1990. In that year the government changed for good and the Hungarian economy was turned from a closed market model to an open market model. This means that the large amount of centralization that was the bane of the Hungarian economy started to be reduced systematically. There has been a lot of progress since that time and the market-based economy in Hungary has been successful so far.

However, the high amount of government spending and the inconsistent business licensing and registration has led to a great crisis in recent year. This has also happened because not all government enterprises have been converted to private ownership and their performance has not been very good lately. Hungary being a member of the EU, has had to take seek out a help package from the EU and the IMF to the tune of $20 billion. This has greatly helped the economy to stabilize in recent times and it helps the country to make room for development.

For importers, the country offers a lot of opportunities. There are several key industries within the country that require imported items to run smoothly. Hungary is a technically advanced country and one where a lot of high-tech equipment is manufactured. For this industry, you can import the high quality raw materials that are often required. This sector also creates a demographic that is not quite rich but has moderate spending power. Your import can also serve their needs by giving them items that they want at a lower price or better quality or both if possible.

Exporting in Hungary is going to be one of the most lucrative opportunities that you have ever come across. The country has recently made a shift from the lower value food and textiles industry to the higher end of manufacturing luxury automobiles, high-end tourism, information technology etc. It is one of the most important aspects of the country because this defines the items that the country has available for export. The country has been exporting these high-end items since their manufacturing was started and exporters will benefit greatly from these.

Hungary has experienced a series of sweeping changes, which have transformed it from a Socialist country to a thriving market economy with its door firmly in the door of the European Union. Even during it’s as a Soviet satellite state, Hungary was the most developed, liberal and wealthy nation in Eastern Europe. Under socialism, it maintained a steady rate of development and with the dissolution of socialism in 1989; the city has entered the post-industrial age with a leading role of blue-collar workforce. The Hungarian Economy continues to grow, and inflation is at a low level relative to the rest of the emerging markets in Central and Eastern Europe.

Hungary was the first Country in Central Europe to join the World Bank and IMF in 1982. Over 30 Billion euros have been injected into Hungary since 1989, and the growth rate of FDI in 2003 reached 45%. Hungary was the first Country in Central Europe to join NATO in 1999, and became a full member of the European Union on 1st May 2004.

Various Property Investment surveys have shown that in the last ten years properties have grown in value, on average, more than 350 percent. Between 1999 and 2003 Budapest property prices increased by 60 percent, and between 2003 and 2005 the economy has seen a growth rate of 15 to 20 percent. In the Budapest property market, rental incomes have provided minimum yields of 7 percent, rising to around 10 percent. There are a number of solid reasons and indicators to suggest that Hungary’s economy should continue to grow at current rates. Property investors can feel secure that there is still much more to gain from buying Hungarian property. Politically Hungary is stable and its system of government is transparent, which has led to numerous companies moving all or part of their European workforce in the country. Since the beginning of the 1190’s the inflow of foreign operating capital has been the main source for the modernisation of the economic structure and for the improvement of competitiveness in Hungary.

With the introduction of cheap flights from major airports from around the world, tourism is increasing at a remarkable rate, and Ferihegy will soon become one of the busiest airports in Eastern Europe. In the first ten months of 2004 discount airlines brought 338’000 visitors to Hungary, and Budapest is among the ten most preferred International destinations. One important factor contributing to Hungary’s continued economic success is the drive towards adoption of the Euro, set for 2010. Government policy should remain sensible and stable in coming years as this target of further European integration is aimed for.

Nowadays, Hungary is a full member of OECD and the World Trade Organization. As an ancient European capital city, Budapest has many of the charms of other major European cities, which, coupled with the dynamism of the economy in the decade and a half since communism, makes the still very low property prices extremely attractive, for both investors and those looking for second homes in a European capital of culture.