Hungary Business Resources

Economy - overview:
Hungary has made the transition from a centrally planned to a market economy, with a per capita income one-half that of the Big Four European nations. Hungary continues to demonstrate strong economic growth and acceded to the European Union in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $23 billion since 1989. Hungarian sovereign debt was upgraded in 2000 and together with the Czech Republic holds the highest rating among the Central European transition economies; however, ratings agencies have expressed concerns over Hungary's unsustainable budget and current account deficits. Inflation has declined from 14% in 1998 to 7% in 2004. Unemployment has persisted around the 6% level, but Hungary's labor force participation rate of 57% is one of the lowest in the OECD. Germany is by far Hungary's largest economic partner. Policy challenges include cutting the public sector deficit to 3% of GDP by 2008, from about 5% in 2004, and orchestrating an orderly interest rate reduction without sparking capital outflows.

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

Airlines
Airlines in Europe
Airlines Worldwide

Airports
Airports in Europe
Airports Worldwide

Country Budget
revenues: $46.07 billion
expenditures: $51.36 billion, including capital expenditures of NA (2004 est.)

Currency (code)
forint (HUF)

Currency Exchange Rate
forints per US dollar - 202.75 (2004), 224.31 (2003), 257.89 (2002), 286.49 (2001), 282.18 (2000)

Fiscal Year
calendar year

GDP (Gross Domestic Product)
GDP (purchasing power parity): $149.3 billion (2004 est.)
GDP - real growth rate: 3.9% (2004 est.)
GDP - per capita: purchasing power parity - $14,900 (2004 est.)
GDP - composition by sector:
agriculture: 3.3%
industry: 31.4%
services: 65.3% (2004 est.)

Imports / Exports
Exports: $54.62 billion f.o.b. (2004 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 31.4%, Austria 6.8%, France 5.7%, Italy 5.6%, UK 5.1% (2004)

Imports: $58.68 billion f.o.b. (2004 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 29.2%, Austria 8.3%, Russia 5.7%, Italy 5.5%, Netherlands 4.9%, China 4.8%, France 4.7% (2004)

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

Investing
Forex, Foreign Exchange Market: Currency Trading

Journals, Magazines, and News
Budapest Business Journal

Labor Force & Unemployment Rate
Labor force: 4.17 million (2004 est.)
Labor force - by occupation: agriculture 6.2%, industry 27.1%, services 66.7% (2002)
Unemployment rate: 5.9% (2004 est.)