Hungary Economy 2007

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 billion (2006 est.)

GDP (official exchange rate):
$113.2 billion (2006 est.)

GDP - real growth rate:
3.9% (2006 est.)

GDP - per capita (PPP):
$17,500 (2006 est.)

GDP - composition by sector:
agriculture: 3.4%
industry: 31.5%
services: 65.1% (2006 est.)

Labor force:
4.21 million (2006 est.)

Labor force - by occupation:
agriculture: 5.5%
industry: 33.3%
services: 61.2% (2003)

Unemployment rate:
7.4% (2006 est.)

Population below poverty line:
8.6% (1993 est.)

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

Distribution of family income - Gini index:
26.9 (2002)

Inflation rate (consumer prices):
4.1% (2006 est.)

Investment (gross fixed):
21.8% of GDP (2006 est.)

Budget:
revenues: $50.51 billion
expenditures: $60.71 billion (2006 est.)

Public debt:
64.9% 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:
33.69 billion kWh (2005)

Electricity - consumption:
35.98 billion kWh (2005)

Electricity - exports:
9.41 billion kWh (2005)

Electricity - imports:
15.64 billion kWh (2005)

Oil - production:
47,530 bbl/day (2004 est.)

Oil - consumption:
132,000 bbl/day (2004 est.)

Oil - exports:
58,380 bbl/day (2004)

Oil - imports:
150,000 bbl/day (2004)

Oil - proved reserves:
102.5 million bbl (1 January 2006)

Natural gas - production:
2.904 billion cu m (2005 est.)

Natural gas - consumption:
14.37 billion cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
11.51 billion cu m (2005)

Natural gas - proved reserves:
32.86 billion cu m (1 January 2006 est.)

Current account balance:
$-6.211 billion (2006 est.)

Exports:
$73.51 billion f.o.b. (2006 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 29.5%, Italy 5.6%, France 5%, Austria 5%, UK 4.5%, Romania 4.2%, Poland 4.1% (2006)

Imports:
$74.02 billion f.o.b. (2006 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 27.1%, Russia 8.2%, China 6.9%, Austria 6.2%, France 4.7%, Italy 4.6%, Netherlands 4.3%, Poland 4.3% (2006)

Economic aid - recipient:
$302.6 million in available EU structural adjustment and cohesion funds (2004)

Reserves of foreign exchange and gold:
$21.59 billion (2006 est.)

Debt - external:
$82.02 billion (2006 est.)

Stock of direct foreign investment - at home:
$96.61 billion (2006 est.)

Stock of direct foreign investment - abroad:
$36.24 billion (2006 est.)

Market value of publicly traded shares:
$41.93 billion (2006)

Currency (code):
forint (HUF)

Exchange rates:
forints per US dollar - 210.39 (2006), 199.58 (2005), 202.75 (2004), 224.31 (2003), 257.89 (2002)