Economy

Economy - overview: Hungary continues to demonstrate strong economic growth and to work toward accession to the European Union. Over 85% of the economy has been privatized. Foreign ownership of and investment in Hungarian firms has been widespread with cumulative foreign direct investment $21 billion by 1999. Hungarian sovereign debt is now rated investment grade. GDP growth of 4% in 1999 will likely be matched or even exceeded in 2000. Inflation, while diminished, is still high at 10%. Economic reform measures include regional development, encouragement of small- and medium-size enterprises, and support of housing.

GDP: purchasing power parity - $79.4 billion (1999 est.)

GDP - real growth rate: 4% (1999 est.)

GDP - per capita: purchasing power parity - $7,800 (1999 est.)

GDP - composition by sector:
agriculture: 5%
industry: 30%
services: 65% (1999 est.)

Population below poverty line: 25.3% (1993 est.)

Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 24% (1993)

Inflation rate (consumer prices): 10% (1999 est.)

Labor force: 4.2 million (1997)

Labor force - by occupation: services 65%, industry 27%, agriculture 8% (1996)

Unemployment rate: 10% (1999 est.)

Budget:
revenues: $13.5 billion
expenditures: $15.1 billion, including capital expenditures of $NA (1999 est.)

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

Industrial production growth rate: 6% (1999 est.)

Electricity - production: 35.104 billion kWh (1998)

Electricity - production by source:
fossil fuel: 61%
hydro: 1%
nuclear: 38%
other: 0% (1999 est.)

Electricity - consumption: 33.317 billion kWh (1998)

Electricity - exports: 3.3 billion kWh (1998)

Electricity - imports: 3.97 billion kWh (1998)

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

Exports: $22.6 billion (f.o.b., 1999)

Exports - commodities: machinery and equipment 51.9%, other manufactures 32.7%, agriculture and food products 10.5%, raw materials 2.9%, fuels and electricity 1.9% (1998)

Exports - partners: Germany 37%, Austria 11%, Italy 6%, Netherlands 5% (1998)

Imports: $25.1 billion (f.o.b., 1999)

Imports - commodities: machinery and equipment 46.5%, other manufactures 40.2%, fuels and electricity 6.6%, agricultural and food products 3.7%, raw materials 3.0% (1998)

Imports - partners: Germany 28%, Austria 10%, Italy 8%, Russia 7% (1998)

Debt - external: $27 billion (1999)

Economic aid - recipient: $122.7 million (1995)

Currency: 1 forint (Ft) = 100 filler

Exchange rates: forints per US$1 - 251.150 (January 2000), 237.146 (1999), 214.402 (1998), 186.789 (1997), 152.647 (1996), 125.681 (1995)