Economic Relations between Hungary and Czechia

Abstract

Trends of the economic relations between Czechia and Hungary – from Hungarian point of view – are reviewed, based mainly on the data of statistics office (KSH) and on the National Bank of Hungary (MNB). Developments are examined in EUR throughout the study, thus evaluation is exempt from HUF exchange rate changes. The first part presents, based on KSH data, the external trade turnover changes between Hungary and Czechia in 1994–2022. Czechia is an important trade partner of Hungary. Timely changes in product structure are emphasized, the most recent state is presented, based on SITC and BEC nomenclature. Car industry turnover size and structure is presented. The role of Czechia in the external trade of services is significantly smaller than in that of goods, but trade increases faster in this field. The second part compares, based on MNB data, the size and divisional structure of the outstanding capital stock, showing that Czech enterprises in Hungary are more productive than the average foreign subsidiary.

Keywords

• external trade in goods
• product structure of foreign trade
• external trade in services
• foreign-controlled affiliates
• fdi