Research Series: The Economic Case for LGBTQ+ Inclusion in Hungary
In 2021, Open for Business released its original report on Central and Eastern Europe which, among other countries, included Hungary.
Unfortunately, in the three and a half years since, today progress on LGBTQ+ rights in Hungary has not just halted but has in fact regressed. This includes the passing of discriminatory laws that have been challenged at the European Court of Justice, as well as a rise in negative discourse directed at the LGBTQ+ community by the countries’ leaders. Simultaneously, Hungary’s economy has experienced a negative impact.
Open for Business estimates Hungary is losing up to HUF 193.2 billion (USD 518.2 million) annually due to LGBTQ+ discrimination. This is up 42.5% since 2021.
These significant costs to Hungary could be reduced through the development of more open and welcoming policies. Our report explores the opportunities for the Hungarian economy and its businesses by addressing both the economic and health-based discrimination facing its LGBTQ+ community.
Key findings from the report include:
Hungary is losing its competitiveness compared to its Visegrad Four neighbors. The data show that Hungary is losing its competitive edge regionally and is falling behind its neighbors on other key economic indicators.
Hungary is losing investment from its key long-term partners. While new investments from China and Russia have buoyed the economy, long-term investors like Germany are reducing investments due to erratic government practices and pressure campaigns on German companies operating in Hungary.
Bias and discrimination towards the LGBTQ+ community are costing the country up to HUF 193 billion (USD 518 million) per year, an increase of 42.5% over five years. LGBTQ+ bias and discrimination have significant impacts on workplace participation and LGBTQ+ community health outcomes, especially depression. Open for Business estimates that this is an increase of up to HUF 82 billion (USD 142 million) since its initial report in 2021.
LGBTQ+ friendly companies outperform their rivals. Data from Open for Business’ global research and interviews with companies operating in Hungary that have open and inclusive policies demonstrate there is a so-called diversity dividend. A focus on inclusivity at companies leads to better employee morale, performance, and ultimately to business success.