The Wealth of Nations Index (WNI) (Wskaźnik Bogactwa Narodów or WBN in Polish) is an alternative economic indicator developed by the Warsaw Enterprise Institute (WEI), a free-market Polish think tank. The index attempts to fix what many see as the primary flaw of Gross Domestic Product (GDP): GDP tracks raw economic output rather than the actual stream of tangible benefits an individual citizen experiences over the course of a year. The WNI operates on a unique methodology built around two distinct pillars: private spending and the quality of public services. The WNI covers EU and OECD nations (40 countries).
In 2026 Oeconomus has become the Hungarian partner for the Warsaw Enterprise Institute, and we are interpreting the Hungarian results from our side.
The 2026. WNI Index is available here.
Hungary in 2026
In the 2026 Wealth of Nations Index (WNI), Hungary scored 572 points, placing 34th among the 40 ranked economies. This marks a slight decline from 587 points in the 2025 edition (33th position) and from 603 points 5 years ago in 2021 (also 33th position). The score consists of 250 points for the size of private economy and 322 points for the value of public services. The share of private-public value basically did not change much in the last five years (256 and 347 points in 2021).
Right ahead of Hungary is Slovakia (594) and Czech Republic (620), while Bulgaria comes right after, with significantly lower score (546).
Score of 2026 vs. scores in the previous years
Hungary’s performance in the 2026 Wealth of Nations Index highlights a trend of relative stagnation after the rapid economic convergence of the late 2010s. In the 2026 edition, Hungary scored 572 points, down from 587 points in 2025 and below its 2021 level of roughly 603 points. This means Hungary has lost around 5% of its overall WNI value over the last five years.
Hungary’s performance is not unique – many other countries in the region showed similar decrease in their results after the global Covid pandemic. For example, Slovakia and Czech Republic, which are right ahead of Hungary in the 2026 ranking (33th and 32nd place), had a significantly better score 5 years ago. Slovakia ranked 29th in 2021 (628 points compared to 594 in 2026), while Czech Republic ranked 23th in 2021 (now 32th), and experienced a big drop in its score (677 points compared to 620 in 2026).
In Hungary the fall reflects both weaker private-economy performance and only moderate improvement in the quality of public expenditure. Hungary’s score is now increasingly constrained by low productivity growth, weak private investment, and concerns over the efficiency of public services, despite relatively high levels of state spending.
Hungary’s growth model has become increasingly dependent on large-scale foreign industrial investments, particularly in the automotive and battery sectors. These projects support exports and headline GDP growth, but their positive spillovers into the broader domestic economy remain limited. As a result, productivity improvements outside export-oriented manufacturing have been relatively weak compared with countries such as Poland or Romania.
Contribution of public expenditure to WNI
In 2026, Hungary’s general government final consumption expenditure stands at 20.03% of GDP. Over a five-year trend, this reflects a minor drop from 20.05% in 2021 and a tiny bump up from 19.75% in 2025. On a per capita basis, the public contribution to the Wealth of Nations Index is 322 index points in 2026, dropping from 330 points in 2025 and 347 points five years ago in 2021. Actually, these numbers reflect similar trends in the countries of the region: in Slovakia the general government final consumption expenditure stands at 20.3%, while in Czech Republic at 19.7%.
While the state’s absolute share in the macroeconomic cake remains stable around one-fifth of GDP, the real value delivered back to citizens via public spending has steadily contracted over the past five years, indicating that public sector efficiency is struggling to keep pace with broader economic growth.
Contribution of the private economy to WNI
Hungary’s private economy per capita reached 23 200 USD in 2026. This marks a slight contraction from 23 772 USD in 2025, keeping the country’s private economy tier stagnant over the medium term.
Private Investment: Gross fixed capital formation (GFCF) across the whole economy is substantial, but the calculated private investment proxy sits at 52.33 billion USD in 2026. This is an increase from the 51.52 billion USD recorded in 2021 but shows a minor deceleration from 53.11 billion USD in 2025. Private dynamics remain highly sensitive to regional supply chains and foreign direct investment trends.
Productivity: The economy generates a private wealth index component of 250 points in 2026, down slightly from 256 points in 2025. Hungary continues to experience a productivity gap relative to the EU average, heavily relying on intensive labour metrics.
Trade Balance: Hungary’s external trade position improved substantially after the energy shock of 2022. The goods and services balance returned to a surplus of around 2–3% of GDP in 2024–2025 [Eurostat, 2025], compared with the sharp deficit seen during the energy crisis. Exports continue to play a major role in economic growth, especially in automotive production and electronics. However, Hungary’s export model remains highly dependent on external demand and global supply chains. This creates vulnerability to slower growth in Germany and to broader geopolitical or trade disruptions.
Quality of Public Expenditure (PEQI)
Hungary’s overall Public Spending Quality Index (PEQI) is 0.694 in 2026, which is a slight improvement from 0.697 in 2025.
External & Internal Security: Military potential is rated at 0.65 in 2026, remaining perfectly flat compared to 2021. Defence spending increased to around 2% of GDP by 2024–2025, meeting NATO expectations. Hungary has also maintained relatively low crime rates by European standards. Intentional homicide rates remain among the lower half of EU countries, at roughly 0.9 per 100,000 inhabitants [Eurostat, 2024].
Infrastructure & Public Services: Hungary performs reasonably well in digital infrastructure. Broadband coverage and mobile internet penetration are close to the EU average [European Commission DESI, 2025]. Road infrastructure has improved considerably over the last decade due to major motorway investments.
However, healthcare outcomes remain problematic. Hungary continues to face shortages of doctors and nurses, long waiting times in specialist care, and persistent regional inequalities in access to services [OECD Health at a Glance, 2025]. Compared with 2021, there has been limited visible improvement in the efficiency of healthcare spending despite higher expenditure levels.
Education: Educational outcomes remain one of Hungary’s main structural weaknesses. Hungary’s PISA scores in mathematics, reading, and science remain below the OECD average and have stagnated over the last decade [OECD PISA, latest edition]. Tertiary attainment among younger adults has improved gradually but still trails much of the EU [Eurostat, 2025].
A persistent issue is the mismatch between spending inputs and measurable outcomes. While education spending has risen nominally, teacher shortages and declining international competitiveness of universities continue to affect quality. This area remains one of the largest drags on Hungary’s long-term WNI performance.
Key takeaways
- Public spending remains high, but efficiency is mixed — security and infrastructure perform well, while healthcare and education lag behind.
- Future improvement depends on productivity-enhancing reforms, stronger domestic private investment, and better quality of public services rather than simply higher state expenditure.
- Hungary’s WNI decline reflects weakening private-sector performance, especially lower investment and slowing productivity growth since 2021.
- Over a longer 10-year horizon, Hungary still shows clear economic advancement compared with the mid-2010s, supported by higher employment, export growth, and industrial expansion. However, the 2021–2026 period suggests that the earlier convergence model may be reaching its limits. Without stronger domestic innovation, higher-value-added production, and improvements in human capital, Hungary may find it increasingly difficult to improve its WNI position in future editions.
