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Hungary Economy Profile 2016

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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 investment, 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 bailout program lapsed at the end of 2010 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 a 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. The government remains committed to keeping the budget deficit in check and lowering public debt by using sectoral taxes, while relying on state interventionist measures to lower utility prices and boost growth and employment.
GDP (purchasing power parity)$258.4 billion (2015 est.)
$251.1 billion (2014 est.)
$242.2 billion (2013 est.)
note: data are in 2015 US dollars
GDP (official exchange rate)$120.6 billion (2015 est.)
GDP - real growth rate2.9% (2015 est.)
3.7% (2014 est.)
1.9% (2013 est.)
GDP - per capita (PPP)$26,200 (2015 est.)
$25,400 (2014 est.)
$24,400 (2013 est.)
note: data are in 2015 US dollars
Gross national saving27.1% of GDP (2015 est.)
24.5% of GDP (2014 est.)
24.6% of GDP (2013 est.)
GDP - composition, by end usehousehold consumption: 49.8%
government consumption: 19.2%
investment in fixed capital: 21.8%
investment in inventories: 0.2%
exports of goods and services: 93.1%
imports of goods and services: -84.1% (2015 est.)
GDP - composition by sectoragriculture: 4.4%
industry: 30.9%
services: 64.8% (2015 est.)
Population below poverty line14.9% (2015 est.)
Labor force4.446 million (2015 est.)
Labor force - by occupationagriculture: 7.1%
industry: 29.7%
services: 63.2% (2011)
Unemployment rate6.8% (2015 est.)
7.7% (2014 est.)
Unemployment, youth ages 15-24total: 20.4%
male: 20%
female: 20.9% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 3.1%
highest 10%: 22.6% (2009)
Distribution of family income - Gini index30.6 (2013 est.)
24.7 (2009)
Budgetrevenues: $56.71 billion
expenditures: $59.44 billion (2016 est.)
Taxes and other revenues47.9% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-2.3% 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 (2016 est.)
Public debt75.5% of GDP (2016 est.)
76.2% of GDP (2014 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)-0.1% (2015 est.)
-0.2% (2014 est.)
Central bank discount rate1.35% (22 July 2015)
2.1% (23 July 2014)
Commercial bank prime lending rate3% (31 December 2015 est.)
4.43% (31 December 2014 est.)
Stock of narrow money$47.18 billion (31 December 2015 est.)
$41.44 billion (31 December 2014 est.)
Stock of broad money$68.87 billion (31 December 2015 est.)
$66.91 billion (31 December 2014 est.)
Stock of domestic credit$74.85 billion (31 December 2015 est.)
$76.19 billion (31 December 2014 est.)
Market value of publicly traded shares$25.69 billion (31 December 2015 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 rate3% (2015 est.)
Current Account Balance$6.141 billion (2015 est.)
$3.13 billion (2014 est.)
Exports$97.57 billion (2015 est.)
$100 billion (2014 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 est.)
Exports - partnersGermany 28%, Romania 5.4%, Slovakia 5.1%, Austria 5%, Italy 4.8%, France 4.7%, UK 4%, Czech Republic 4% (2015)
Imports$92.92 billion (2015 est.)
$96.42 billion (2014 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 25.8%, China 6.7%, Austria 6.6%, Poland 5.5%, Slovakia 5.3%, France 5%, Czech Republic 4.8%, Netherlands 4.6%, Italy 4.5% (2015)
Reserves of foreign exchange and gold$39.39 billion (31 December 2015 est.)
$42.02 billion (31 December 2014 est.)
Debt - external$129.2 billion (31 December 2015 est.)
$202.4 billion (31 December 2013 est.)
Stock of direct foreign investment - at home$119.8 billion (31 December 2015 est.)
$115.5 billion (31 December 2014 est.)
Stock of direct foreign investment - abroad$50.3 billion (31 December 2015 est.)
$47.74 billion (31 December 2014 est.)
Exchange ratesforints (HUF) per US dollar -
273.8 (2015 est.)
232.6 (2014 est.)
232.6 (2013 est.)
225.1 (2012 est.)
201.05 (2011 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on October 8, 2016

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