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Hungary Economy Profile 2014

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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-28 average. 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 a severe economic contraction 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. 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. Global demand for high yield has since helped Hungary to obtain funds on international markets. Hungary’s progress reducing its deficit to under 3% of GDP led the European Commission in 2013 to permit Hungary for the first time since joining the EU in 2004 to exit the Excessive Deficit Procedure.
GDP (purchasing power parity)$196.6 billion (2013 est.)
$196.3 billion (2012 est.)
$199.8 billion (2011 est.)
note: data are in 2013 US dollars
GDP (official exchange rate)$130.6 billion (2013 est.)
GDP - real growth rate0.2% (2013 est.)
-1.7% (2012 est.)
1.6% (2011 est.)
GDP - per capita (PPP)$19,800 (2013 est.)
$19,800 (2012 est.)
$20,000 (2011 est.)
note: data are in 2013 US dollars
Gross national saving17.1% of GDP (2013 est.)
19.3% of GDP (2012 est.)
20.4% of GDP (2011 est.)
GDP - composition, by end usehousehold consumption: 55.5%
government consumption: 20.4%
investment in fixed capital: 16.4%
investment in inventories: -0.7%
exports of goods and services: 97.2%
imports of goods and services: -88.8%
(2013 est.)
GDP - composition by sectoragriculture: 3.4%
industry: 28%
services: 68.7% (2013 est.)
Population below poverty line14% (2012)
Labor force4.263 million (2013 est.)
Labor force - by occupationagriculture: 7.1%
industry: 29.7%
services: 63.2% (2011)
Unemployment rate10.5% (2013 est.)
10.7% (2012 est.)
Unemployment, youth ages 15-24total: 28.1%
male: 28.8%
female: 27.3% (2012)
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)
Budgetrevenues: $62.24 billion
expenditures: $66.01 billion (2013 est.)
Taxes and other revenues47.7% of GDP (2013 est.)
Budget surplus (+) or deficit (-)-2.9% 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, recognizing 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 (2013 est.)
Public debt79.8% of GDP (2013 est.)
79.3% of GDP (2012 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)1.9% (2013 est.)
5.7% (2012 est.)
Central bank discount rate5.75% (19 December 2012)
7% (31 December 2011)
Commercial bank prime lending rate6.5% (31 December 2013 est.)
9.02% (31 December 2012 est.)
Stock of narrow money$34.75 billion (31 December 2013 est.)
$33.03 billion (31 December 2012 est.)
Stock of broad money$67.47 billion (31 December 2013 est.)
$68.7 billion (31 December 2012 est.)
Stock of domestic credit$77.79 billion (31 December 2013 est.)
$87.27 billion (31 December 2012 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 est.)
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 rate1.8% (2013 est.)
Current Account Balance$1.722 billion (2013 est.)
$2.087 billion (2012 est.)
Exports$92.98 billion (2013 est.)
$90.23 billion (2012 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$89.52 billion (2013 est.)
$87.37 billion (2012 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$38.49 billion (31 December 2013 est.)
$44.67 billion (31 December 2012 est.)
Debt - external$170.3 billion (31 December 2013 est.)
$169.3 billion (31 December 2012 est.)
Stock of direct foreign investment - at home$112 billion (31 December 2013 est.)
$107 billion (31 December 2012 est.)
Stock of direct foreign investment - abroad$45.95 billion (31 December 2013 est.)
$41.82 billion (31 December 2012 est.)
Exchange ratesforints (HUF) per US dollar -
227.8 (2013 est.)
225.1 (2012 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 August 23, 2014