Hungary had a 2004 trade deficit of 3.8 billion euros (4.7 billion dollars), down from 4.2 billion euros a year before, preliminary figures released Friday by the KSH central statistics bureau showed.

In December 2004,the trade deficit fell to 238.5 million euros from 376.6 million euros for the same month in 2003.

Exports last year were up 17 percent on an annual basis to 44.1 billion euros, while imports rose 14 percent to 47.9 billion euros.

The rise in exports was led by the sale of machines and parts, the volume of which increased 22 percent from 2003, KSH said.

Components needed to produce these machines and parts, particularly computers and other electronics equipment, largely accounted for the surge in imports, KSH said.

The countries of the European Union, which Hungary joined on May 1, remained by far the largest trading partner with 71 percent of imports coming from the EU and 79 percent of exports going to the 25-member bloc.

Within the EU, the original 15 countries preceding the "big bang" of May last year -- when seven other countries from central and eastern Europe along with Malta and Cyprus also joined the EU -- accounted for most of the trade volume.

Some 62 percent of total imports came from the EU-15 while 70.7 percent of all exports went to these countries.

In comparison, only 9.2 percent of imports came from the nine other new EU countries while 8.6 percent of the total volume of exports were destined to these states.