Hungary Economy Profile 2009

Economy - overview

Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms is widespread, with cumulative foreign direct investment totaling more than $60 billion since 1989. The government's IMF-mandated austerity measures, imposed since late 2006, have reduced the budget deficit from over 9% of GDP in 2006 to 3.3% in 2008. Hungary's impending inability to service its short-term debt - brought on by the global credit crunch in late 2008 - led Budapest to seek and receive an IMF-arranged financial assistance package worth over $25 billion. The global financial crisis, declining exports, and low domestic consumption and fixed asset accumulation, dampened by government austerity measures, will result in a negative growth rate of about -1.5% to -2.5% in 2009.

GDP (purchasing power parity)

$196.6 billion (2008 est.)
$195.4 billion (2007 est.)
$193.1 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$156.3 billion (2008 est.)

GDP - real growth rate

0.6% (2008 est.)
1.2% (2007 est.)
4.1% (2006 est.)

GDP - per capita (PPP)

$19,800 (2008 est.)
$19,600 (2007 est.)
$19,300 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2.9%
industry: 36.9%
services: 60.2% (2008 est.)

Population below poverty line

8.6% (1993 est.)

Labor force

4.2 million (2008 est.)

Labor force - by occupation

agriculture: 5%
industry: 32.4%
services: 62.6% (2005)

Unemployment rate

7.8% (2008 est.)
7.3% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.5%
highest 10%: 24.1% (2004)

Distribution of family income - Gini index

28 (2005)
24.4 (1998)

Investment (gross fixed)

20.2% of GDP (2008 est.)

Budget

revenues: $67.7 billion
expenditures: $73 billion (2008 est.)

Public debt

68.6% of GDP (2008 est.)
58.3% of GDP (2004 est.)

Inflation rate (consumer prices)

6.1% (2008 est.)
8% (2007 est.)

Central bank discount rate

10% (31 December 2008)
7.5% (31 December 2007)

Commercial bank prime lending rate

9.48% (26 January 2009)

Stock of money

$32.8 billion (31 December 2008)
$36.78 billion (31 December 2007)

Stock of quasi money

$47.45 billion (31 December 2008)
$43.07 billion (31 December 2007)

Stock of domestic credit

$113.7 billion (31 December 2008)
$109.5 billion (31 December 2007)

Industries

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

Industrial production growth rate

-1% (2008 est.)

Electricity - production

37.66 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 60.1%
hydro: 0.5%
nuclear: 39%
other: 0.3% (2001)

Electricity - consumption

37.11 billion kWh (2006 est.)

Electricity - exports

10.69 billion kWh (2007 est.)

Electricity - imports

14.68 billion kWh (2007 est.)

Oil - production

32,580 bbl/day (2007 est.)

Oil - consumption

162,800 bbl/day (2007 est.)

Oil - imports

178,400 bbl/day (2005)

Oil - exports

66,660 bbl/day (2005)

Oil - proved reserves

20.18 million bbl (1 January 2008 est.)

Natural gas - production

2.545 billion cu m (2007 est.)

Natural gas - consumption

13.36 billion cu m (2007 est.)

Natural gas - exports

138 million cu m (2007 est.)

Natural gas - imports

10.45 billion cu m (2007 est.)

Natural gas - proved reserves

8.098 billion cu m (1 January 2008 est.)

Current Account Balance

-$12.98 billion (2008 est.)
-$8.922 billion (2007 est.)

Agriculture - products

wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products

Exports

$106.6 billion (2008 est.)
$93.86 billion (2007 est.)

Exports - commodities

machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6% (2003)

Exports - partners

Germany 26.5%, Italy 5.4%, Romania 5.3%, Austria 4.9%, Slovakia 4.7%, France 4.7%, UK 4.5%, Czech Republic 4% (2008)

Imports

$106.5 billion (2008 est.)
$93.4 billion (2007 est.)

Imports - commodities

machinery and equipment 51.6%, other manufactures 35.7%, fuels and electricity 7.7%, food products 3.1%, raw materials 2.0% (2003)

Imports - partners

Germany 25.4%, Russia 9%, China 7.6%, Austria 6.1%, Netherlands 4.4%, France 4.4%, Italy 4.3% (2008)

Reserves of foreign exchange and gold

$33.87 billion (31 December 2008 est.)
$24.05 billion (31 December 2007 est.)

Debt - external

$212.1 billion (31 December 2008)
$167.7 billion (31 December 2007)

Stock of direct foreign investment - at home

$237.1 billion (31 December 2008 est.)
$164.7 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$159.7 billion (31 December 2008 est.)
$97.42 billion (31 December 2007 est.)

Market value of publicly traded shares

$21.9 billion (31 December 2008)
$47.65 billion (31 December 2007)
$41.93 billion (31 December 2006)

Economic aid - recipient

$302.6 million (2004)

Currency (code)

HUF

Currency (code)

forint (HUF)

Exchange rates

forints (HUF) per US dollar - 171.8 (2008), 183.83 (2007), 210.39 (2006), 199.58 (2005), 202.75 (2004)

Fiscal year

calendar year