Hungary: 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.

Economy Overview

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 $200 billion since 1989. The government's 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 financial crisis in late 2008 - led Budapest to seek and receive an IMF-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 6.7% in 2009.

GDP (purchasing power parity):

$185.7 billion (2009 est.)
country comparison to the world: 54
$198.2 billion (2008 est.)
$197 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$129.5 billion (2009 est.)

GDP - real growth rate:

-6.3% (2009 est.)
country comparison to the world: 199
0.6% (2008 est.)
1% (2007 est.)

GDP - per capita (PPP):

$16,600 (2009 est.)
country comparison to the world: 63
$19,800 (2008 est.)
$19,600 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 2.8%
industry: 34.7%
services: 62.5% (2009 est.)

Labor force:

4.17 million (January 2010 est.)
country comparison to the world: 85

Labor force - by occupation:

agriculture: 4.5%
industry: 32.1%
services: 63.4% (2008)

Unemployment rate:

10% (2009 est.)
country comparison to the world: 116
7.8% (2008 est.)

Investment (gross fixed):

20% of GDP (2009 est.)
country comparison to the world: 97

Budget:

revenues: $54.15 billion
expenditures: $59.75 billion (2009 est.)

Inflation rate (consumer prices):

4.2% (2009 est.)
country comparison to the world: 135
6% (2008 est.)

Commercial bank prime lending rate:

11.04% (31 December 2009 est.)
country comparison to the world: 88
10.18% (31 December 2008 est.)

Agriculture - products:

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

Industries:

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

Industrial production growth rate:

-14.2% (2009 est.)
country comparison to the world: 156

Oil - production:

35,580 bbl/day (2009 est.)
country comparison to the world: 67

Natural gas - production:

2.603 billion cu m (2009 est.)
country comparison to the world: 57

Current account balance:

$441 million (2009 est.)
country comparison to the world: 50
-$10.81 billion (2008 est.)

Exports:

$82.1 billion (2009 est.)
country comparison to the world: 36
$107.2 billion (2008 est.)

Exports - commodities:

machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6% (2009 est.)

Exports - partners:

Germany 25.54%, Italy 5.67%, UK 5.41%, France 5.37%, Romania 5.28%, Slovakia 4.97%, Austria 4.52% (2009)

Imports:

$76.42 billion (2009 est.)
country comparison to the world: 34
$107.3 billion (2008 est.)

Imports - commodities:

machinery and equipment 50%, fuels and electricity 11%, food products, raw materials

Imports - partners:

Germany 25.05%, China 8.56%, Russia 7.3%, Austria 6.08%, Netherlands 4.73%, France 4.51%, Slovakia 4.14%, Italy 4.13%, Poland 4.07% (2009)

Debt - external:

$147.5 billion (31 December 2009 est.)
country comparison to the world: 30
$164.5 billion (31 December 2008 est.)

Stock of direct foreign investment - at home:

$70.41 billion (31 December 2009 est.)
country comparison to the world: 44
$68.61 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$19.41 billion (31 December 2009 est.)
country comparison to the world: 38
$17.64 billion (31 December 2008 est.)

Exchange rates:

Source: CIA - The World Factbook