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The Economy of Hungary

Hungarian Economy

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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. 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. The government's IMF-mandated austerity measures, imposed since late 2006, have reduced the budget deficit from over 9% of GDP in 2006 to 3.3% in 2008. Hungary's impending inability to service its short-term debt - brought on by the global credit crunch in late 2008 - led Budapest to seek and receive an IMF-arranged financial assistance package worth over $25 billion. The global financial crisis, declining exports, and low domestic consumption and fixed asset accumulation, dampened by government austerity measures, will result in a negative growth rate of about -1.5% to -2.5% in 2009.

GDP:

GDP - real growth rate: -1.5% (2008 est.) 1.3% (2007 est.) 3.9% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 3.2% industry: 31.9% services: 65% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 4% highest 10%: 22.2% (2002)

Distribution of family income - Gini index: 28 (2005)

Inflation rate (consumer prices):

Labor force: 4.2 million (2008 est.)

Labor force - by occupation: agriculture: 5% industry: 32.4% services: 62.6% (2005)

Unemployment rate: 8% (2008 est.)

Budget: revenues: $76.2 billion expenditures: $81.5 billion (2008 est.)

Industries: mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles

Industrial production growth rate: 0.4% (2008 est.)

Electricity - production: 37.66 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 37.11 billion kWh (2006 est.)

Electricity - exports: 10.69 billion kWh (2007 est.)

Electricity - imports: 14.68 billion kWh (2007 est.)

Oil - production: 32,580 bbl/day (2007 est.)

Oil - consumption: 162,800 bbl/day (2007 est.)

Oil - exports: 66,660 bbl/day (2005)

Oil - imports: 178,400 bbl/day (2005)

Oil - proved reserves: 20.18 million bbl (1 January 2008 est.)

Natural gas - production: 2.545 billion cu m (2007 est.)

Natural gas - consumption: 13.36 billion cu m (2007 est.)

Natural gas - exports: 138 million cu m (2007 est.)

Natural gas - imports: 10.45 billion cu m (2007 est.)

Natural gas - proved reserves: 8.098 billion cu m (1 January 2008 est.)

Agriculture - products: wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products

Exports: $109.3 billion f.o.b. (2008 est.)

Exports - commodities: machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6% (2003)

Exports - partners: Germany 28.1%, Italy 5.6%, France 4.7%, Austria 4.6%, Romania 4.5%, UK 4.5%, Slovakia 4.2%, Poland 4.2% (2007)

Imports: $107.5 billion f.o.b. (2008 est.)

Imports - commodities: 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: Germany 26.6%, China 7.8%, Russia 6.9%, Austria 6.1%, Italy 4.5%, France 4.3%, Netherlands 4.3% (2007)

Debt - external: $144.2 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: forints (HUF) per US dollar - 171.8 (2008), 183.83 (2007), 210.39 (2006), 199.58 (2005), 202.75 (2004)

Fiscal year: