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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.

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.)

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.)

Population below poverty line:
8.6% (1993 est.)

Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 20.5% (1998)

Distribution of family income - Gini index:
24.4 (1998)

Inflation rate (consumer prices):
7% (2004 est.)

Investment (gross fixed):
22.8% of GDP (2004 est.)

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

Public debt:
58.3% of GDP (2004 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 produ