Hungary

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Economics

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 are widespread, with cumulative foreign direct investment worth more than $70 billion. The government's austerity measures, imposed since late 2006, have reduced the budget deficit from over 9% of GDP in 2006 to 3.2% in 2010, with a target of less than 3% in 2011. Hungary's impending inability to service its short-term debt - brought on by the global financial crisis in late 2008 - 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 an economic contraction of 6.3% 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 economy rebounded in 2010 with a big boost from exports, especially to Germany, and growth of more than 2.5% is expected in 2011. Unemployment remained high, at more than 10% in 2010.

GDP (purchasing power parity):

 

$187.6 billion (2010 est.)

country comparison to the world: 55

$185.4 billion (2009 est.)

$198.7 billion (2008 est.)

note: data are in 2010 US dollars

 

GDP (official exchange rate):

 

$129 billion (2010 est.)

 

GDP - real growth rate:

 

1.2% (2010 est.)

country comparison to the world: 166

-6.7% (2009 est.)

0.8% (2008 est.)

 

GDP - per capita (PPP):

 

$18,800 (2010 est.)

country comparison to the world: 64

$18,500 (2009 est.)

$19,800 (2008 est.)

note: data are in 2010 US dollars

 

GDP - composition by sector:

 

agriculture: 2.4%

industry: 36.9%

services: 60.7% (2010 est.)

 

Labor force:

 

4.23 million (2010 est.)

country comparison to the world: 85

 

Labor force - by occupation:

 

agriculture: 4.7%

industry: 30.9%

services: 64.4% (2010)

 

Unemployment rate:

 

11.2% (2010 est.)

country comparison to the world: 122

10% (2009 est.)

 

Population below poverty line:

 

13.9% (2010)

 

Household income or consumption

by percentage share:

 

lowest 10%: 3.1%

highest 10%: 22.6% (2009)

 

Distribution of family income - Gini index:

 

24.1 (2010)*

country comparison to the world: 139

24.4 (1998)

 

Investment (gross fixed):

 

19.3% of GDP (2010 est.)

country comparison to the world: 124

 

Budget:

 

revenues: $58.17 billion

expenditures: $63.71 billion (2010 est.)

 

Taxes and other revenues:

 

45.1% of GDP (2010 est.)

country comparison to the world: 26

 

Budget surplus (+) or deficit (-):

 

-4.3% of GDP (2010 est.)

country comparison to the world: 131

 

Public debt:

 

80.2% of GDP (2010 est.)

country comparison to the world: 21

78.4% of GDP (2009 est.)

 

Inflation rate (consumer prices):

 

4.9% (2010 est.)

country comparison to the world: 146

4.2% (2009 est.)

 

Central bank discount rate:

 

5.75% (31 December 2010)

country comparison to the world: 63

6.25% (31 December 2009)

 

Commercial bank prime lending rate:

 

7.592% (31 December 2010 est.)

country comparison to the world: 96

11.058% (31 December 2009 est.)

 

Stock of narrow money:

 

$31.8 billion (31 December 2010 est.)

country comparison to the world: 57

$32.55 billion (31 December 2009 est.)

 

Stock of broad money:

 

$68.82 billion (31 December 2010 est.)

country comparison to the world: 62

$76.38 billion (31 December 2009 est.)

 

Stock of domestic credit:

 

$104.8 billion (31 December 2010 est.)

country comparison to the world: 49

$110.8 billion (31 December 2009 est.)

 

Market value of publicly traded shares:

 

$27.71 billion (31 December 2010)

country comparison to the world: 58

$28.29 billion (31 December 2009)

$18.58 billion (31 December 2008)

 

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:

 

10.5% (2010 est.)

country comparison to the world: 23

 

Electricity - production:

37.55 billion kWh (2010 est.)

country comparison to the world: 58

 

Electricity - consumption:

 

42.7 billion kWh (2010 est.)

country comparison to the world: 49

 

Electricity - exports:

 

4.703 billion kWh (2010 est.)

 

Electricity - imports:

 

9.879 billion kWh (2010 est.)

 

Oil - production:

 

34,480 bbl/day (2010 est.)

country comparison to the world: 66

 

Oil - consumption:

 

146,600 bbl/day (2010 est.)

country comparison to the world: 68

 

Oil - exports:

 

69,820 bbl/day (2009 est.)

country comparison to the world: 74

 

Oil - imports:

 

171,600 bbl/day (2010 est.)

country comparison to the world: 57

 

Oil - proved reserves:

 

26.57 million bbl (1 January 2011 est.)

country comparison to the world: 84

 

Natural gas - production:

 

2.494 billion cu m (2010 est.)

country comparison to the world: 55

 

Natural gas - consumption:

 

12.05 billion cu m (2010 est.)

country comparison to the world: 44

 

Natural gas - exports:

 

227 million cu m (2010 est.)

country comparison to the world: 41

 

Natural gas - imports:

 

9.636 billion cu m (2010 est.)

country comparison to the world: 25

 

Natural gas - proved reserves:

 

8.098 billion cu m (1 January 2011 est.)

country comparison to the world: 82

 

Current account balance:

 

$2.692 billion (2010 est.)

country comparison to the world: 44

$472 million (2009 est.)

 

Exports:

 

$93.29 billion (2010 est.)

country comparison to the world: 36

$81.56 billion (2009 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 25.5%, Italy 5.5%, UK 5.4%, Romania 5.3%, Slovakia 5.1%, France 4.9%, Austria 4.7% (2010 est.)

 

Imports:

 

$87.08 billion (2010 est.)

country comparison to the world: 34

$76.78 billion (2009 est.)

 

Imports - commodities:

 

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

 

Imports - partners:

 

Germany 26.1%, Russia 7.7%, China 6.8%, Austria 5.9%, Netherlands 4.4%, Poland 4.3%, Italy 4.2% (2010 est.)

 

Reserves of foreign exchange and gold:

 

$44.99 billion (31 December 2010 est.)

country comparison to the world: 36

$44.18 billion (31 December 2009 est.)

 

Debt - external:

 

$232.5 billion (30 June 2011 est.)

country comparison to the world: 31

$179 billion (31 December 2010 est.)

 

Stock of direct foreign investment - at home:

 

$71.47 billion (31 December 2010 est.)

country comparison to the world: 47

$68.97 billion (31 December 2009 est.)

 

Stock of direct foreign investment - abroad:

 

$22.17 billion (31 December 2010 est.)

country comparison to the world: 41

$20.49 billion (31 December 2009 est.)

 

Exchange rates:

 

forints (HUF) per US dollar -

206.15 (2010)

202.34 (2009)

171.8 (2008)

183.83 (2007)

210.39 (2006)