Hungary's service sector outpaces industry, fueling economic growth

GKI’s analysis shows that Hungary’s service sector has expanded by 60% since 2010, far surpassing the 20% growth recorded in the industrial sector. Within services, infocommunications grew 156% and business services (including SSCs) rose 127%, driven by digitalisation and the spread of cloud‑based offerings.

The rapid expansion is contrasted with constraints in other areas: retail activity has been curbed by government price‑stop and compulsory action measures, tourism is dampened by a strong forint, and logistics faces ongoing supply‑chain shocks. Public‑service sectors show mixed results – education services have barely increased (+1%) due to demographic decline and limited funding, while health services have risen 40% thanks to private‑sector growth and higher wages.

GKI concludes that the new Hungarian government should prioritise further development of the service sector and the maximisation of human capital, especially by improving education, rather than pursuing a policy of reindustrialisation.