Economy in Hungary

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Economy—overview: Hungary has consolidated its March 1995 stabilization program and undergone enough restructuring to become an established market economy. The country appears to have entered a period of sustainable growth gradually falling inflation and stable external balances. The government's main economic priorities are to complete structural reforms particularly the implementation of the 1997 pension reform act (the first in the region) taxation reform and planning for comprehensive health care local government finance reform and the reform of education at all levels. Foreign investment has totaled more than $17 billion through 1997. In recognition of Hungary's improved macro-economic situation all major credit-rating agencies listed the country's foreign currency debt issuances as investment grade in 1996. The current IMF stand-by arrangement expired in February 1998 and Budapest and the IMF agree that there is no need to renew it. The OECD welcomed Hungary as a member in May 1996 and in December 1997 the EU invited Hungary to begin the accession process. Forecasters expect 4%-5% growth in 1998. EU member since 1th of May 2004.

GDP: purchasing power parity—$160.6 billion (2005)

GDP—real growth rate: 3.9% (2006)

GDP—per capita: purchasing power parity—$15 900(2005)

GDP—composition by sector:

agriculture: 7.2%

industry: 31.8%

services: 61% (1995)

Inflation rate—consumer price index: 3.9% (2006)

Labor force:

total: 3.9 million (2004)

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

Unemployment rate: 7.5(2006)

Budget:

revenues: €2.015 billion (2006)

expenditures: €8.097 billion (2006)

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

Industrial production growth rate: 8.3% (2004)

Electricity—capacity: 6.979 million kW (1995)

Electricity—production: 32.92 billion kWh (1995)

Electricity—consumption per capita: 3 423 kWh (1995)

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

Exports:

total value: €58.5 billion (f.o.b. 2006)

commodities: machinery and equipment 62.4% other manufactures 27.6% agriculture and food products 5.5% raw materials 1.9% fuels and electricity 2.6% (2006)

partners: EU 62.8% (Germany 29% Austria 10.6% Italy 8.0%) FSU 8.6% (1996)

Imports:

total value: €60.3 billion (c. i. f. 2006)

commodities: machinery and equipment 50.4% other manufactures 32.7% fuels and electricity 11.2% agricultural and food products 4% raw materials 1.7% (1996)

partners: EU 59.8% (Germany 23.6% Austria 9.5% Italy 8.1%) FSU 14.9% (1996)

Debt—external: €93.8 billion (2006)

Economic aid: $NA

Currency: 1 forint (Ft) = 100 filler

Exchange (middle) rates: €1  - about 254 forints, $1 - about 186 forints (September 2006)

Fiscal year: calendar year

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September 03, 2007 change by sendai (1 point)

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