Hungary economic growth lags behind regional peers, GKI report

A recent analysis by GKI Gazdaságkutató Zrt. indicates that the Hungarian economy has significantly lagged behind its regional competitors, specifically Romania and Poland, over the last 15 years. While Hungary saw strong growth between 2014 and 2019, the momentum shifted after 2022. In 2025, Hungary was the slowest-growing economy in the region with a 0.5 percent growth rate, compared to a regional average of 1.9 percent.

The report suggests that the previous economic model, which relied on cheap labor and massive capital inflows, has reached exhaustion. Although nominal GDP in euros grew by 70 percent, this figure is the weakest among neighboring countries; for comparison, Poland's GDP grew by 109 percent and Romania's by 132 percent. The analysis notes that much of the domestic growth has been driven by inflation and capital-intensive sectors rather than translating into widespread increases in living standards or productivity.

To ensure sustainable growth, the report advises the new government to move away from stimulating demand and instead focus on creating competitive capacities. This requires an intensive shift toward a technology- and knowledge-driven model, integrating the country into global value chains through higher value-added segments and service-oriented industries.