Hungarian Investment Promotion Agency

Investors placing their trust in Hungary decided to launch 77 projects with HIPA’s support, injecting EUR 10.3 billion of fresh capital in the Hungarian economy and creating 18,500 new jobs.

2024 thus became the second most successful year in HIPA's history, trailing alone the record-breaking year of 2023, when the total investment volume exceded EUR 13 billion.

Twenty countries investing in Hungary

Hungary remains a stable and secure investment destination. A business-friendly environment, one of Europe’s most competitive tax systems, a highly skilled workforce, and a comprehensive system of incentives attracted investors from twenty countries across three continents, ranging from Sweden to Thailand and from the Netherlands to Japan.

The results of 2024 confirm the Eastern Opening policy and the strategy of connectivity, since the largest number of foreign projects - ten investments - came from Germany, Hungary's number one partner, while China and the United States are in a tie for the second place with 7 investment projects each.

In terms of investment volume, China takes the lead with EUR 5.2 billion, representing around 51% of the total value. South Korea is second with EUR 2.6 billion. The partners involved in the implementation of the Eastern Opening policy – mainly Asian countries – together accounted for EUR 8.2 billion, 80% of the total volume.

However, the country ranking, based on the number of projects, underlines that Hungary's role as a meeting point for Eastern and Western capital can be further strengthened, as Germany, the United States, Switzerland, France, and Sweden are also in the top ten, joining Eastern countries, such as China, South Korea, Japan, and India.

In this context, HIPA CEO Mr. István Joó explained that:

Hungary aims to act as a bridge between Western car manufacturers and Asian battery producers, which is in line with the policy of economic connectivity and economic neutrality.

Hungary is third in the ranking, highlighting the outstanding performance of Hungarian-owned companies, which have decided to launch 23 projects in cooperation with HIPA.

This is not only an exceptionally large share – nearly 30% – of the total of 77 projects, but also an all-time high, significantly exceeding the previous record of 18 projects, set in 2017. Based on the volume of investment, Hungary ranks third in the ranking of countries. 

The investments planned by Hungarian companies represent EUR 680 million and are set to create 1,300 jobs.

Hungary provides momentum for innovation built on connectivity

The data also clearly indicates that international investors are increasingly relying on Hungary in the sphere of innovation and development. This is reflected in, among others in the strengthening of the business service centers (BSCs). Within this sector – that contributes already 3% to the country's GDP – the number of positions in research and development (R&D) has doubled in a single year, and total employment exceeds 110,000. Considering the 215 centers making up the BSC community together with the ICT/IT sector and other R&D activities, 19 projects can be identified as primarily innovation-focused investments.

The projects developed together with HIPA thus significantly contribute to the transition from the times of “Made in Hungary” to the era of “Invented in Hungary”. At the same time, they ensure that – as a result of investments built on connectivity – Hungary leads in the number of patents registered in the battery industry across Europe.

As Mr. István Joó stated,

The future of mobility in Europe lies in innovation and cooperation, not in tariffs.

Electrification in focus

The sectoral breakdown of the data reveals the traditional strength of the automotive industry. Almost 40% of the investment volume – EUR 4.09 billion – flows into this sector. Automotive is closely followed by the electronics industry, absorbing 38.7% – EUR 3.98 billion –, whereas the food industry is in the third place, with EUR 807 million, representing 7.8% of the total. 

The automotive sector takes the lead in terms of employment creation as well, with 10,511 new jobs. The electronics industry, in second place, is set to create 3,368 new jobs, while the ICT/IT sector gains the third place with 1,606 new jobs.

The geographical distribution of the projects also helps the Hungarian economy to go through a pivotal change, with 82% of projects targeting locations outside Budapest. Particularly significant is the role of the southern regions, which are being brought into focus by the constant fine-tuning of the investment promotion system. Csongrád-Csanád County, for example, had a strong year, securing six projects in 12 months.

Mr. István Joó ultimately pointed out that

these investments significantly contribute to making 2025 the year of economic growth, building on Hungary's principle of economic neutrality.