ECONOMY OVERVIEW
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. Hungary continues to demonstrate strong economic growth and acceded to the EU in May 2004. The private sector accounts for over 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. Inflation has declined from 14% in 1998 to 3.7% in 2006. 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 3% of GDP by 2008, from about 6.5% in 2006, and tackling a persistent trade deficit. The current government has announced and begun to implement an austerity program designed to address these issues, leading to eventual adoption of the euro.
GDP - purchasing power parity:
$175.2 billion (2006 est.)
GDP - real growth rate:
3.9% (2006 est.)
GDP - per capita:
$17,600 (2006 est.)
GDP - by sector (agriculture):
agriculture: 3.1%
GDP - by sector (industry):
industry: 32.1%
GDP - by sector (services):
services: 64.8% (2006 est.)
Export Partners:
Germany 29.5%, Italy 5.6%, Austria 5%, France 5%, UK 4.5%, Romania 4.2%, Poland 4% (2006)
Import Partners:
Germany 27.2%, Russia 8.4%, China 7.1%, Austria 6.2%, France 4.7%, Italy 4.5%, Netherlands 4.3%, Poland 4.2% (2006)
Export Commodities:
machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6% (2003)
Import Commodities:
machinery and equipment 51.6%, other manufactures 35.7%, fuels and electricity 7.7%, food products 3.1%, raw materials 2.0% (2003)
Exports Volume:
$67.99 billion f.o.b. (2006 est.)
Imports Volume:
$69.75 billion f.o.b. (2006 est.)
Labour Force:
4.2 million (2006 est.)
Unemployment Rate:
7.4% (2006 est.)
Population below poverty line:
8.6% (1993 est.)
Inflation Rate:
3.7% (2006 est.)
Investment (gross fixed):
23.4% of GDP (2006 est.)
Public Debt:
68.6% of GDP (2006 est.)
Agriculture Products:
wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products
Industries:
mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles
Industrial Production Growth Rate:
9.5% (2006 est.)
Electricity - production:
31.83 billion kWh (2004)
Electricity - consumption:
37.1 billion kWh (2004)
Electricity - exports:
6.3 billion kWh (2004)
Electricity - imports:
13.8 billion kWh (2004)
Oil - production:
47,530 bbl/day (2004 est.)
Oil - consumption:
132,000 bbl/day (2004 est.)
Oil - exports:
47,180 bbl/day (2001)
Oil - imports:
94,000 bbl/day (2004)
Natural gas - production:
2.963 billion cu m (2004 est.)
Natural gas - consumption:
Natural gas - exports:
Natural gas - imports:
Current Account Balance:
-$8.392 billion (2006 est.)
Currency Code:
forint (HUF)