"Hungary Defence & Security Report 2016" Published

From: Fast Market Research, Inc.
Published: Mon Feb 29 2016

Hungarian defence spending remains relatively modest compared to the Europe region as a whole, and has declined as a percentage of GDP over the last decade, reflecting the country's stable security environment. We currently forecast the defence budget to remain around 0.9% of GDP in 2016, declining 1.6% y-o-y to USD1.08bn; however, we note that this figure may be revised upwards should the government take action towards realising plans for improving conditions for armed forces personnel; increase participation in peacekeeping missions, expand military infrastructure or procure new equipment and maintain a strong security presence at borders amid the ongoing migrant crisis. With a reasonable economic growth forecast over the medium term, and Hungary's commitment to increase military capabilities under NATO, we forecast defence expenditure to record growth from 2017, enabling Budapest to meet more of HDF's modernisation requirements - particularly in aerospace. Technologically advanced equipment such as aircraft, will continue to be sourced from abroad, as local manufacturers lack design and production capabilities. Meanwhile, with limited state investment into defence R&D, we expect Hungarian defence exports to remain modest over our forecast period - although we do see some potential for growth in niche segments.

Full Report Details at
- http://www.fastmr.com/prod/1123437_hungary_defence_security.aspx?afid=301

Latest Updates

At present, we forecast military spending to remain around 0.9% of GDP in 2016, reaching USD1.08bn; however, we not that this figure may be revised upwards, as the Hungarian government has indicated that it plans to raise the defence budget for the year by 20%. Specifically, in addition to operational expenses, the defence ministry needs to acquire air-to-surface weapons for its Gripen aircraft, develop infrastructure at the Papa airbase, modernise missile systems and replace two Gripen jets over the coming quarters. It is also looking to replace its ageing helicopters and transport aircraft, as well as a range of ground-based equipment, in the next few years.

South Korea and Hungary signed a defence agreement in December 2015 covering defence trade, R&D and industry collaboration.

In H115, the Hungarian National Assembly approved the participation of the HDF in operations by the international coalition against Islamic State in northern Iraq.

Hungary is contributing to Visegrad Four's joint EU battle group, scheduled to be set up at the beginning of 2016. The force will consist of nearly 3,000 troops - of which Hungary will contribute approximately 700.

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156 (1.413.485.7001 Int'l)

You may also be interested in these related reports:

- Czech Republic Defence & Security Report 2016
- Serbia Defence & Security Report 2016
- Italy Defence & Security Report 2016
- Venezuela Defence & Security Report 2016
- Croatia Defence & Security Report 2016

Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

Visit website »