Hungary’s economy is at an inflection point amid turbulent times. After grappling with a technical recession and Europe’s highest inflation in 2022-2023 (peaking at 25.6% in Jan 2023), the country is charting a new course to ensure resilience. Geopolitical pressures – from the war in Ukraine to EU funding disputes – have underscored the need to invest in strategic sectors for long-term stability. Prime Minister Viktor Orbán’s government has declared 2025 a “year of breakthrough,” targeting a return to growth and economic sovereignty. Below, we examine the key sectors driving Hungary’s future strategy and highlight Hungarian listed companies positioned to benefit from these trends.
Key Sectors for Future Resilience
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Green Energy and Climate Resilience: Hungary is prioritizing energy security through an integrated mix of nuclear and renewables. Paks and the planned Paks II project ensure stable baseload power, while solar capacity has rapidly grown to nearly 8 GW and is targeted to reach 12 GW by 2028. To support intermittent renewables, the country is adding grid-scale batteries and three new CCGT plants, plus aiming for 1 GW of battery storage by 2030. These steps cut dependence on imported energy—especially Russian gas—while supporting EU climate goals. The Energy Ministry, now also responsible for climate and IT policy, is driving both green and digital transformation.
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Electric Vehicles and Battery Manufacturing: Hungary is rapidly positioning itself as a major European EV and battery hub, driven by large-scale incentives and foreign investment. By 2030, it is expected to become Europe’s second-largest EV battery producer, led by CATL’s $7.6 billion Debrecen gigafactory targeting 100 GWh of capacity. More than 40 related battery-supply projects are underway, reinforcing Hungary’s emerging ecosystem. Automakers are scaling EV production alongside this growth, with BYD opening a plant in 2025 and Mercedes, BMW, and Volkswagen expanding their local electric manufacturing.
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Digital Infrastructure and Services: Hungary is also strengthening its digital economy, viewing ICT, telecom, and business services as key to future competitiveness. The business services sector has expanded quickly since COVID, employing tens of thousands. To support this growth, the country is upgrading its digital and telecom infrastructure. A major step was the 2023 acquisition of Vodafone Hungary by 4iG and the state, a €1.7 billion deal that formed the new national operator One Hungary, which now controls about 29% of the mobile market and reinforces domestic ownership of strategic networks..
Stocks to Watchout For
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MOL Nyrt, Hungary’s largest energy company, plays a central role in fuel supply and petrochemicals. Strong refinery margins—boosted by discounted crude—pushed operating income above $25 billion in both 2022 and 2023, creating windfall revenues that supported the state budget and new investments. The company is now pivoting toward sustainability, committing $4 billion to green projects by 2030 and targeting net-zero emissions by 2050. MOL is upgrading refineries to handle non-Russian crude and expanding into solar, wind, recycling, hydrogen, and other low-carbon activities.