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Hungary Economy Profile 2013

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Economy - overviewHungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-27 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment worth more than $70 billion. In late 2008, Hungary's impending inability to service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an IMF/EU/World Bank-arranged financial assistance package worth over $25 billion. The global economic downturn, declining exports, and low domestic consumption and fixed asset accumulation, dampened by government austerity measures, resulted in an economic contraction of 6.8% in 2009. In 2010 the new government implemented a number of changes including cutting business and personal income taxes, but imposed "crisis taxes" on financial institutions, energy and telecom companies, and retailers. The IMF/EU bail-out program lapsed at the end of the year and was replaced by Post Program Monitoring and Article IV Consultations on overall economic and fiscal processes. The economy began to recover in 2010 with a big boost from exports, especially to Germany, and achieved growth of approximately 1.7% in 2011. At the end of 2011 the government turned to the IMF and the EU to obtain financial backstop to support its efforts to refinance foreign currency debt and bond obligations in 2012 and beyond, but Budapest's rejection of EU and IMF economic policy recommendations led to a breakdown in talks with the lenders in late 2012. Since joining the EU in 2004, Hungary has been subject to the European Commission's Excessive Deficit Procedure; Brussels has requested that the government outline measures to sustainably reduce the budget deficit to under 3% of GDP. Ongoing economic weakness in Western Europe as well as lack of domestic investment and demand caused a GDP to fall 1.7% in 2012. Unemployment remained high, at more than 11%.
GDP (purchasing power parity)$198.8 billion (2012 est.)
$202.2 billion (2011 est.)
$198.9 billion (2010 est.)
note: data are in 2012 US dollars
GDP (official exchange rate)$126.9 billion (2012 est.)
GDP - real growth rate-1.7% (2012 est.)
1.7% (2011 est.)
1.2% (2010 est.)
GDP - per capita (PPP)$20,000 (2012 est.)
$20,200 (2011 est.)
$19,900 (2010 est.)
note: data are in 2012 US dollars
Gross national saving19% of GDP (2012 est.)
20.4% of GDP (2011 est.)
19.8% of GDP (2010 est.)
GDP - composition, by end usehousehold consumption: 54.2%
government consumption: 20.6%
investment in fixed capital: 17.2%
investment in inventories: 0.3%
exports of goods and services: 94.7%
imports of goods and services: -86.9%
(2012 est.)
GDP - composition by sectoragriculture: 3.3%
industry: 28.5%
services: 68.2% (2012 est.)
Population below poverty line14% (2012)
Labor force4.391 million (2012 est.)
Labor force - by occupationagriculture: 7.1%
industry: 29.7%
services: 63.2% (2011)
Unemployment rate10.9% (2012 est.)
11.6% (2011 est.)
Unemployment, youth ages 15-24total: 26.1%
male: 27.2%
female: 24.6% (2011)
Household income or consumption by percentage sharelowest 10%: 3.1%
highest 10%: 22.6% (2009)
Distribution of family income - Gini index24.7 (2009)
24.4 (1998)
Investment (gross fixed)17.2% of GDP (2012 est.)
Budgetrevenues: $58.41 billion
expenditures: $61.04 billion (2012 est.)
Taxes and other revenues46% of GDP (2012 est.)
Budget surplus (+) or deficit (-)-2.1% of GDP
note: Hungary has been under the EU Excessive Deficit Procedure since it joined the EU in 2004; in March 2012 the EU elevated its Excessive Deficit Procedure against Hungary and proposed freezing 30% of the country's Cohesion Funds because 2011 deficit reductions were not achieved in a sustainable manner; in June 2012, the EU lifted the freeze, reognizing that steps had been taken to reduce the deficit; the latest EC forecasts project the Hungarian deficit to increase above 3% both in 2013 and in 2014 due to sluggish growth and the government's fiscal tightening (2012 est.)
Public debt79.2% of GDP (2012 est.)
81.4% of GDP (2011 est.)
note: general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year in the following categories of government liabilities: currency and deposits, securities other than shares excluding financial derivatives, and government, state government, local government, and social security funds.
Inflation rate (consumer prices)5.7% (2012 est.)
3.9% (2011 est.)
Central bank discount rate5.75% (19 December 2012)
7% (31 December 2011)
Commercial bank prime lending rate9.02% (31 December 2012 est.)
8.34% (31 December 2011 est.)
Stock of narrow money$33.03 billion (31 December 2012 est.)
$30.51 billion (31 December 2011 est.)
Stock of broad money$74.5 billion (31 December 2011 est.)
$86.68 billion (31 December 2010 est.)
Stock of domestic credit$87.29 billion (31 December 2012 est.)
$88.6 billion (31 December 2011 est.)
Market value of publicly traded shares$22.9 billion (31 December 2012 est.)
$22.8 billion (31 December 2011)
$27.71 billion (31 December 2010)
Agriculture - productswheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products
Industriesmining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles
Industrial production growth rate0.7% (2012 est.)
Current Account Balance$2.146 billion (2012 est.)
$1.209 billion (2011 est.)
Exports$90.23 billion (2012 est.)
$98.83 billion (2011 est.)
Exports - commoditiesmachinery and equipment 53.5%, other manufactures 31.2%, food products 8.7%, raw materials 3.4%, fuels and electricity 3.9% (2012)
Exports - partnersGermany 25.6%, Romania 6.2%, Slovakia 6.1%, Austria 6%, Italy 4.8%, France 4.8%, UK 4.2% (2012)
Imports$87.37 billion (2012 est.)
$95.2 billion (2011 est.)
Imports - commoditiesmachinery and equipment 45.4%, other manufactures 34.3%, fuels and electricity 12.6%, food products 5.3%, raw materials 2.5% (2012)
Imports - partnersGermany 25.1%, Russia 8.8%, China 7.4%, Austria 7.1%, Slovakia 5.6%, Poland 4.8%, Italy 4.5%, Netherlands 4.2% (2012)
Reserves of foreign exchange and gold$44.67 billion (31 December 2012 est.)
$48.84 billion (31 December 2011 est.)
Debt - external$202 billion (31 December 2012 est.)
$208.7 billion (31 December 2011 est.)
Stock of direct foreign investment - at home$94.9 billion (31 December 2012 est.)
$100.1 billion (31 December 2011 est.)
Stock of direct foreign investment - abroad$30.3 billion (31 December 2012 est.)
$28.74 billion (31 December 2011 est.)
Exchange ratesforints (HUF) per US dollar -
225.1 (2012 est.)
201.05 (2011 est.)
207.94 (2010 est.)
202.34 (2009)
171.8 (2008)
Fiscal yearcalendar year

Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of February 21, 2013