French-owned companies in Hungary have seen notable growth, with 544 companies now operating in the country—an increase of nearly 11% since 2020. These companies collectively employ almost 49,000 people and generate an annual turnover exceeding EUR 13 billion, according to the Hungarian-French Chamber of Commerce and Industry.

Key Findings from Economic Study

This data comes from a comprehensive study conducted by the Economic Department of the French Embassy in Hungary and the French Foreign Trade Counselors’ Association in Hungary. The report, similar to the "French Presence in Hungary 2024" publication from 2020, highlights France's continued prominence as a major investor in Hungary.

France's Investment Impact

According to the latest figures from the Hungarian National Bank, France ranks as the fifth-largest foreign investor in Hungary, with EUR 5.15 billion invested, representing 5.1% of total foreign investment. This significant position is mainly due to new investments from French companies already established in the country.

Shifting Dynamics in French Investments

While the influx of capital for new company creation has slowed, the nature of French investment in Hungary has evolved. The dominance of large French groups has decreased, making way for the growing influence of small and medium-sized enterprises (SMEs) and mid-cap companies. The food, trade, consumer goods, and industrial sectors remain pivotal, contributing to nearly half of the turnover generated by French companies in Hungary. These sectors account for 37% of the total French presence and employ 35% of the workforce.

Growth in Automotive and Environmental Sectors

The automotive sector has experienced remarkable growth, doubling its turnover and increasing its workforce by 64% over the past four years. Similarly, the environmental and energy sectors have seen a significant rise in new enterprises, with substantial growth in both turnover and employment.

Conclusion

French investment continues to play a crucial role in Hungary's economy, with a diverse range of sectors contributing to significant employment and economic output. The evolving presence of French SMEs and mid-caps, alongside established large groups, underscores the dynamic nature of this bilateral economic relationship.