Hungary: Economy
The World Factbook 1993: Hungary Economy

Overview: Hungary is in the midst of a difficult transition from a command to a market economy. Agriculture is an important sector, providing sizable export earnings and meeting domestic food needs. Industry accounts for about 40% of GDP and 30% of employment. Hungary claims that less than 25% of foreign trade is now with former CEMA countries, while about 70% is with OECD members. Hungary's economic reform programs during the Communist era gave it a head start in creating a market economy and attracting foreign investment. In 1991, Hungary received 60% of all foreign investment in Eastern Europe, and in 1992 received the largest single share. The growing private sector accounts for about one-third of national output according to unofficial estimates. Privatization of state enterprises is progressing, although excessive red tape, bureaucratic oversight, and uncertainties about pricing have slowed the process. Escalating unemployment and high rates of inflation may impede efforts to speed up privatization and budget reform, while Hungary's heavy foreign debt will make the government reluctant to introduce full convertibility of the forint before 1994 and to rein in inflation. The government is projecting an end to the 5-year recession in 1993, and GDP is forecast to grow 0%-3%.

National product: GDP - purchasing power equivalent - $55.4 billion (1992 est.)

National product real growth rate: -5% (1992 est.)

National product per capita: $5,380 (1992 est.)

Inflation rate (consumer prices): 23% (1992 est.)

Unemployment rate: 12.3% (1992)

Budget: revenues $13.2 billion; expenditures $15.4 billion, including capital expenditures $NA (1993 est.)

Exports: $10.9 billion (f.o.b., 1992 est.) commodities: raw materials, semi-finished goods, chemicals 35.5%, machinery 13.5%, light industry 23.3%, food and agricultural 24.8%, fuels and energy 2.8% partners: OECD 70.7%, (EC 50.1%, EFTA 15.0%), LDCs 5.1%, former CEMA members 23.2%, others 1.0% (1991) Imports: $11.7 billion (f.o.b., 1992 est.) commodities: fuels and energy 14.9%, raw materials, semi-finished goods, chemicals 37.6%, machinery 19.7%, light industry 21.5%, food and agricultural 6.3% partners: OECD 71.0%, (EC 45.4%, EFTA 20.0%), LDCs 3.9%, former CEMA members 23.9%, others 1.2% (1991)

External debt: $23.5 billion (September 1992)

Industrial production: growth rate -10% (1992)

Electricity: 7,200,000 kW capacity; 30,000 million kWh produced, 3,000 kWh per capita (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 - $9.1 billion in assistance from OECD countries (from 1st quarter 1990 to end of 2nd quarter 1991)

Currency: 1 forint (Ft)=100 filler

Exchange rates: forints per US$1 - 83.97 (December 1992), 78.99 (1992), 74.74 (1991), 63.21 (1990), 59.07 (1989), 50.41 (1988)

Fiscal year: calendar year