PESTLE ANALYSIS OF By Avinash S. Jadhav Roll No :11
INRTODUCTION Official name: Hungarian Republic Location: East-Central Europe Area: 93,030 square km Population: 10,197,119 Density of population: 108 person/square km, 63%of population live in cities Capital: Budapest , area of 525 Km2 (1,775 million inhabitants) Language: Hungarian / Magyar Administration: 19counties, 23 towns with county rights Length of borders: 2246 Km Number of neighboring countries: (borders with Austria , Slovakia , Ukraine , Romania , Serbia , Croatia , Slovenia )
POLITICS Political Conditions President: Pal Schmitt Prime Minister: Viktor Orban Minister of Foreign Affairs: Janos Martonyi Ambassador to the United States: Gyorgy Szapary Ambassador to the United Nations: Csaba Korosi Form of government: Parliamentary Republic A new constitution was adopted on 18 April 2011, which will enter into force on 1 January 2012 upon its Signing by President Schmitt on 25 April 2011.
EconomicsHungary GDP Hungary Gross Domestic Product is worth 130 billion dollars or 0.21% of the world economy, according to the World Bank.Hungary GDP Growth Rate The Gross Domestic Product (GDP) in Hungary expanded 0.5 percent in the third quarter of 2011 over the previous quarter.Sector wise GDP Agriculture: 2.4%, Industry: 37.3%, Services: 60.3% (2011 EST.)
EconomicsHungary Interest Rate The benchmark interest rate in Hungary was last reported at 7 percent. In Hungary, interest rates decisions are taken by the Monetary Council of the Hungarian National BankHungary Inflation Rate The inflation rate in Hungary was last reported at 4.1 percent in December of 2011. From 1992 until 2010, the average inflation rate in Hungary was 12.01Hungary GDP per capita The GDP per capita in Hungary was last reported at 5629 US dollars in December of 2010, according to the World Bank.
EconomicsHungary Industrial Production Industrial Production in Hungary expanded 3.5 percent in November of 2011.Hungary Unemployment Rate The unemployment rate in Hungary was reported at 10.6 percent in September of 2011 to November of 2011 period. From 1999 until 2010, Hungarys Unemployment Rate averaged 7.13 percent
SocialHungary Population The total population in Hungary was last reported at 10.0 million people in 2011 from 10.0 million in 1960, changing 0 percent during the last 50 years.Ethnic groups: Hungary include Magyar (nearly 90%), Romany, German, Serb, Slovak, and others.Religion: majority of Hungarys people are Roman Catholic; other religions represented are Calvinist, Lutheran, Jewish, Baptist, Adventist, Pentecostal, and Unitarian.Language: Hungarian & Magyar are the predominant language.
SocialAge structure 0-14 years: 14.6% (male 767,824/female 721,242) 15-64 years: 68.7% (male 3,361,538/female 3,444,450) 65 years and over: 16.7% (male 622,426/female 1,058,582)Literacy Definition: age15and over can read and write Total population: 99.4% Male: 99.5% Female: 99.3%
SocialFestivals In January and February Budapest International Circus Festival attracts thousands of overseas visitors . March or April, Budapest’s own Titanic International Film Festival comes to town. The Spring Festival, at the end of March, The Autumn Music Festival, held over ten October days, The country also has a long tradition of celebrating Christmas during December
TechnologicalNational Office for Research and Technology (NKTH) is a government office responsible for the Hungarian Governments science, technology and innovation policy. NKTH has the following responsibilities and missions: Elaborating the government strategy in the field of research, technology development, and innovation, Forming the means and tools for the R&D and innovation policy at government level, Preparing documents concerning the national science and technology policy, Representing Hungarian interests in international and EU S&T affairs, Co-coordinating the activity of the Research and Technology Innovation Fund, Supervising the Agency for Research Fund Management and Research Exploitation, Raising public understanding and awareness in research and innovation.
TechnologicalRecent technological developments in Hungary The new technology developed by Cellum allows using mobile telephones as MasterCard bank cards in Hungary. Hungary is the first country in Europe to implement the new technology.Development in the field of renewable resources The Hungarian National Renewable Action Plan has targeted to increase the share of renewable energy sources to 147% until 2020.
TechnologicalNorwegian– Hungarian robot romance goes global A Norwegian–Hungarian robot technology project for the health care sector and small- and medium sized enterprises has received global attention. The project celebrated its successful achievements in Budapest in MayMNT-ERA.NET Support Programmes Name of initiative/program: ERANET_HU_09 Programme owner (ministry): National Office for Research and Technology The programme aims at enhancing the competitiveness of the economy and improving the sustainability of development by promoting application-oriented, strategic research and development in the field of state-of-the-art technologies.
LegalTaxationCorporate income tax Corporate tax is set at 19% (tax base is profit before taxes) and tax payable may be reduced by various tax incentives. Corporate tax can be reduced to 10% for the sum of a companys tax base that does not exceed HUF 50 million if: corporate tax benefits are not effected at least one person is employed employees are paid at least double the minimum wage on average the company is not subject of a labour law penaltyVAT Rates of VAT: The general rate is 25% applied to most products and services (18% is applied to diary and bakery products, the supply of district heating to households is currently taxed at 25%)
LegalPersonal income tax Hungary follows a flat-rate tax model. all taxpayers are subjected to a 16 percent personal income tax regardless of income level.Local Taxes Building tax Land tax Communal tax Local business tax
LegalLabor Law in HungaryContract of work The contract must be set out in writingCompulsory contents of the contract of employment: name and designation of the parties agreement on the employee’s job description on his/her basic salary and on the site at which work is to be carried out
LegalWorking hours In Hungary full-time work involves eight hours’ work a day, and 40 hours a week. Regulations on employment or the agreement of the parties may establish longer working hours (though not exceeding 12 hours a day and no more than 60 hours a week).Minimum wages The minimum wages in Hungary is since 1. 1. 2009 the amount 71 500 forint (EUR) per month.Holiday up to the age of 25: - 20 working days from the age of 25 :- 21 working days up to the age of 31 :- an additional working day every three years up to the age of 45 :- an additional working day every two years from the age of 45 :- 30 working days
EnvironmentalEnvironment Regulations In Hungary environmental protection matters have been managed by the Ministry of Environmental Protection and Water (Ministry) since 1988 The Ministry is responsible for the development of environmental policies and for international co- operation The effective day-to-day management of environment-related matters is mostly carried out by the regional organizations (agencies) of the Ministry
Environmental The main, general environmental protection rules are laid down in Act LIII of 1995 on the General Rules of Environmental Protection (Environment Act). According to section 68 of the Environment Act, prior to the commencement of activities that have or may have a significant impact on the environment, an environmental impact assessment must be carried out