Overview: Hungary is still in the midst of a difficult transition from a command to a market economy. Its economic reforms during the Communist era gave it a head start on this process, particularly in terms of attracting foreign investors - Hungary has accounted for about half of all foreign direct investment in Eastern Europe since 1989. Nonetheless, the economy continued to contract in 1993, with real GDP falling perhaps 1%. Although the privatization process has lagged, in December 1993 Hungary carried out the largest privatization yet in Eastern Europe, selling a controlling interest in the Matav telecommunications firm to private investors - including a 30% share to a US-German consortium for $875 million. Overall, about half of GDP now originates in the private sector. Unemployment rose to about 13% in 1993 while inflation remained above 20%, and falling exports pushed the trade deficit to about $3 billion. The government hopes that economic recovery in Western Europe in 1994 will boost exports, lower the trade deficit, and help jump-start the economy. The budget, however, is likely to remain a serious concern; depressed tax revenue pushed up the budget deficit in 1993.

National product: GDP - purchasing power equivalent - $57 billion (1993 est.)

National product real growth rate: -1% (1993 est.)

National product per capita: $5,500 (1993 est.)

Inflation rate (consumer prices): 23% (1993 est.)

Unemployment rate: 13% (1993)

Budget:
revenues: $10.2 billion
expenditures: $12.5 billion, including capital expenditures of $NA (1993 est.)

Exports: $8.9 billion (f.o.b., 1993 est.)
commodities: raw materials, semi-finished goods, chemicals 39.6%, machinery 14.5%, consumer goods 22.3%, food and agriculture 20.0%, fuels and energy 3.6% (January-June 1993)
partners: EC 49.8% (Germany 27.8%, Italy 9.5%), Austria 10.7%, the FSU 13.1%, Eastern Europe 9.8% (1992)

Imports: $12.5 billion (f.o.b., 1993 est.)
commodities: fuels and energy 13.9%, raw materials, semi-finished goods, chemicals 35.9%, machinery 22.4%, consumer goods 21.8%, food and agriculture 6.0% (January-June 1993)
partners: EC 42.8% (Germany 23.6%, Italy 6.3%), Austria 14.4%, the FSU 16.8%, Eastern Europe 9.2%

External debt: $24.7 billion (November 1993)

Industrial production: growth rate 4% (1993 est.)

Electricity:
capacity: 7,200,000 kW
production: 30 billion kWh
consumption per capita: 3,000 kWh (1992)

Industries: mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), buses, automobiles

Agriculture: including forestry, accounts for 15% of GDP and 16% of employment; highly diversified crop and livestock farming; principal crops - wheat, corn, sunflowers, potatoes, sugar beets; livestock - hogs, cattle, poultry, dairy products; self-sufficient in food output

Illicit drugs: transshipment point for Southeast Asia heroin transiting the Balkan route

Economic aid:
recipient: assistance pledged by OECD countries since 1989 about $9 billion

Currency: 1 forint (Ft) = 100 filler
Exchange rates: forints per US$1 - 93.46 (September 1993), 92.5 (1993), 78.99 (1992), 74.74 (1991), 63.21 (1990), 59.07 (1989)

Fiscal year: calendar year

NOTE: The information regarding Hungary on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Hungary Economy 1995 information contained here. All suggestions for corrections of any errors about Hungary Economy 1995 should be addressed to the CIA.