Hungary is an open, export-driven economy. The structure of the Hungarian economy is mostly compatible with other countries at the same level of development. Service sector accounts for slightly less than two-thirds of the GDP. Within the service sector, the private services (trade, tourism, finance and other economic services) are highly developed. Services, especially economic services, represent a sizeable portion of the country’s export. The transportation sector (with some companies owned by the state and others by private corporations) offers optimum conditions for transit traffic due to Hungary’s favourable geographical location. The agricultural sector, for which Hungary has especially favourable climate conditions, represents approximately 4 % of the country’s GDP. In line with international trends, the industrial sector accounts for around one quarter of the country’s GDP. Recently, primarily export-focused industries have been able to increase their output. These include the automotive industry, telecommunications and computer technology. Due to the COVID-19 pandemic the GDP decreased by 5% in 2020, but showed strong recovery in 2021 when it grew by 17,9% on year-on-year basis in the second quarter.
Hungary – Malaysia economic relations
In 2020, Malaysia was the second most important trading partner in the ASEAN. The volume of trade between the two countries increased significantly despite the COVID-19 pandemic, exceeding 1 billion USD. This was mainly due to the increase in import from Malaysia (+57.6%), while Hungary's exports decreased marginally (-4.4%) last year. In the first half of 2021, the export from South-East Asian country slowed down (-7.0%), however the Hungarian export increased by a greater pace than ever before. (+ 21.7%).
Major bilateral economic related agreements
Convention on the Avoidance of Double Taxation (1991)
Investment Protection Agreement (1995)
Economic Cooperation Agreement (2019)
Important trade related institutions