Industrial production is still declining in Hungary, but it is growing in the EU

This article is available for reading in Trade magazin 2025/11.

The decline in Hungarian industrial production in July (-1.3%) was the seventh largest in the EU. Industrial production volume in the first eight months of 2025 was 7.3% lower (seasonally and calendar adjusted 2.3%) than in the same period last year. According to data from the Central Statistical Office (KSH), the volume of foreign sales – which account for 64% of total sales – decreased by 1.3%, while domestic sales were down 5.3% in the same period.

GKI’s business surveys reveal: the main reason for the decline in production is insufficient demand. Both domestic and export sales were down in the first seven months of 2025. Investments in the manufacturing industry dropped 17.4% in the first half of 2025, although key large-scale investments (construction of BMW, BYD, CATL factories, etc.) are underway, which could give the sector a boost when they are activated. Signs of revival are already visible on our most important markets and the economic outlook is improving following the US-EU customs agreement. The recovery has begun, but its pace is very slow. It seems very likely that without growth in the EU economy Hungarian industry won’t be able to get back on track.