Hungary:
Economy

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Other pages in this profile of Hungary:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $60 billion since 1989. Hungary issues investment-grade sovereign debt. International observers, however, have expressed concerns over Hungary's fiscal and current account deficits. In 2007, Hungary eliminated a trade deficit that had persisted for several years. Inflation declined from 14% in 1998 to a low of 3.7% in 2006, but jumped to 7.8% in 2007. Unemployment has persisted above 6%. Hungary's labor force participation rate of 57% is one of the lowest in the Organization for Economic Cooperation and Development (OECD). Germany is by far Hungary's largest economic partner. Policy challenges include cutting the public sector deficit to 4% of GDP by 2008, from about 6% in 2007. The government's austerity program of tax hikes and subsidy cuts has reduced Hungary's large budget deficit, but the reforms have dampened domestic consumption, slowing GDP growth to about 2% in 2007. The government will need to pass additional reforms to ensure the long-term stability of public finances. The government plans to eventually lower its public sector deficit to below 3% of GDP to adopt the euro.
GDP (purchasing power parity)	Definition - World rank and map $191.3 billion (2007 est.)
GDP (official exchange rate)	Definition $138.4 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 1.3% (2007 est.)
GDP - per capita	Definition - World rank and map $19,000 (2007 est.)
GDP - composition by sector	Definition agriculture: 2.8% industry: 31.5% services: 65.7% (2007 est.)
Labor force	Definition 4.19 million (2007 est.)
Labor force - by occupation	Definition agriculture: 5.5% industry: 33.3% services: 61.2% (2003)
Unemployment rate	Definition - World rank and map 7.3% (2007 est.)
Population below poverty line	Definition 8.6% (1993 est.)
Household income or consumption by percentage share	Definition lowest 10%: 4% highest 10%: 22.2% (2002)
Distribution of family income - Gini index	Definition - World rank and map 28 (2005)
Inflation rate (consumer prices)	Definition - World rank and map 7.9% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 20.9% of GDP (2007 est.)
Budget	Definition revenues: $63.97 billion expenditures: $71.69 billion (2007 est.)
Public debt	Definition - World rank and map 67% of GDP (2007 est.)
Agriculture - products	Definition wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products
Industries	Definition mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles
Industrial production growth rate	Definition - World rank and map 3.4% (2007 est.)
Electricity - production	Definition - World rank and map 33.69 billion kWh (2005)
Electricity - consumption	Definition - World rank and map 35.98 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 3,623.1 kWh (2005)
Electricity - exports	Definition 9.41 billion kWh (2005)
Electricity - imports	Definition 15.64 billion kWh (2005)
Oil - production	Definition - World rank and map 42,180 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 152,200 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 15.3 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 58,380 bbl/day (2004)
Oil - imports	Definition - World rank and map 150,000 bbl/day (2004)
Oil - proved reserves	Definition - World rank and map 102.5 million bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 2.904 billion cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 14.37 billion cu m (2005 est.)
Natural gas - consumption per capita	Definition - World rank and map 1,447 cu m (2005 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005 est.)
Natural gas - imports	Definition - World rank and map 11.51 billion cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 32.86 billion cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$7.75 billion (2007 est.)
Exports	Definition - World rank and map $88.77 billion f.o.b. (2007 est.)
Exports - commodities	Definition machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6% (2003)
Exports - partners	Definition Germany 28.1%, Italy 5.6%, France 4.7%, Slovakia 4.6%, Romania 4.6%, Austria 4.6%, UK 4.3%, Poland 4.1% (2006)
Imports	Definition - World rank and map $87.88 billion f.o.b. (2007 est.)
Imports - commodities	Definition machinery and equipment 51.6%, other manufactures 35.7%, fuels and electricity 7.7%, food products 3.1%, raw materials 2.0% (2003)
Imports - partners	Definition Germany 26.6%, China 7.8%, Russia 6.9%, Austria 6.1%, Italy 4.5%, Netherlands 4.3%, France 4.3% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $24.05 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $125.9 billion (31 December 2007)
Stock of direct foreign investment - at home	Definition $108.6 billion (2007 est.)
Stock of direct foreign investment - abroad	Definition $45.54 billion (2007 est.)
Market value of publicly traded shares	Definition $41.93 billion (2006)
Economic aid - recipient	Definition $302.6 million (2004)
Currency (code)	Definition forint (HUF)
Exchange rates	Definition forints per US dollar - 186.16 (2007), 210.39 (2006), 199.58 (2005), 202.75 (2004), 224.31 (2003)
Fiscal year	Definition calendar year

Hungary: Economy

Hungary:
Economy