Information Technology in HUNGARY
IT Export Areas
Local production has grown significantly in recent years. In 1995, IBM Storage Products Co. established a hard disk drive manufacturing facility in Hungary. Total production exceeded one million drives in 1996, all of which were exported, and IBM expects to triple output in 1997. Philips established an assembly plant for computer monitors in 1994. In 1997, the plant expected to produce 1.3 million monitors all for export (24).
Hungary is a founding member of the World Trade Organization (WTO) and has fairly liberal import/export policies (25). The major exporter in Hungary is Videoton Holding Rt. They export a number of products including: color televisions, compact disks, defense communications and security systems, computer and office automation, electromechanical assembly (coil & transformers), software development, training and education, and computers (26).
Numbers for early 1998 show that Hungary exported roughly USD 3.3 billion, 81% went to industrial countries, 2% to developing countries and 17 percent to Central and Eastern European countries. Germany is largest outlet for Hungarian exports. Exports broken down by commodity groups are: 10% foods, beverages, tobacco; 3% primary materials; 2 % energy resources; 33% processed products; and 51% machines and equipment. Although Hungary does more importing of computers and software than exporting, a portion of the 51% percent does include IT related products. Among the industrial countries, growth in exports has been seen in Spain, Belgium, Finland, USA, Netherlands, and Great Britain (27).
With Telecommunications becoming the most promising niche of the National economy in Hungary, it is probable that exports will continue to rise over the next few years.
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Last update: May 11, 1998 by Jennifer L. Houley