| 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. |
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| GDP | 1.75% (2005 est.) |
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| GDP - real growth rate | 3.9% (2006 est.) |
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| GDP - composition by sector | agriculture: 3.1%
industry: 32.1%
services: 64.8% (2006 est.) |
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| Population below poverty line | 8.6% (1993 est.) |
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Household income or consumption
by percentage share | lowest 10%: 4.1%
highest 10%: 22.2% (2002) |
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Distribution of family income
- Gini index | 26.9 (2002) |
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| Labor force | 4.2 million (2006 est.) |
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| Labor force - by occupation | agriculture: 5.5%
industry: 33.3%
services: 61.2% (2003) |
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| Unemployment rate | 7.4% (2006 est.) |
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| Budget | revenues: $48.73 billion
expenditures: $59.62 billion; including capital expenditures of $NA (2006 est.) |
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| Industries | mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles |
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| Industrial production growth rate | 9.5% (2006 est.) |
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Electricity -
production | 31.83 billion kWh (2004) |
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Electricity -
production by source | fossil fuel: 60.1%
hydro: 0.5%
nuclear: 39%
other: 0.3% (2001) |
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Electricity -
consumption | 37.1 billion kWh (2004) |
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Electricity -
exports | 6.3 billion kWh (2004) |
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Electricity -
imports | 13.8 billion kWh (2004) |
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| Oil - production | 47,530 bbl/day (2004 est.) |
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| Oil - consumption | 132,000 bbl/day (2004 est.) |
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| Oil - exports | 47,180 bbl/day (2001) |
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| Oil - imports | 94,000 bbl/day (2004) |
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| Oil - proved reserves | 110.7 million bbl (1 January 2002) |
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| Agriculture - products | wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products |
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| Exports | $67.99 billion f.o.b. (2006 est.) |
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| Exports - commodities | machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6% (2003) |
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| Exports - partners | Germany 30.2%, Italy 5.7%, Austria 5.6%, France 5.3%, UK 5.1% (2005) |
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| Imports | $69.75 billion f.o.b. (2006 est.) |
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| 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) |
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| Imports - partners | Germany 27.5%, Russia 7.4%, China 7.1%, Austria 6.6%, France 4.9%, Italy 4.9%, Netherlands 4.3% (2005) |
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| Debt - external | $107.3 billion (30 June 2006 est.) |
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| Economic aid - recipient | $3.4 billion in available EU structural adjustment and cohesion funds (2004-06) |
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| Currency code | HUF |
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| Exchange rates | forints per US dollar - 210.39 (2006), 199.58 (2005), 202.75 (2004), 224.31 (2003), 257.89 (2002) |
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| Fiscal year | calendar year |
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