ailing address is APO New York 09213); telephone [36]
(1) 112-6450

_#_Flag: three equal horizontal bands of red (top), white, and green

_*_Economy
_#_Overview: Agriculture is an important sector, providing sizable
export earnings and meeting domestic food needs. Industry accounts for
about 40% of GNP and 30% of employment. About 40% of Hungary's foreign
trade is with the USSR and Eastern Europe and a third is with the EC.
Low rates of growth reflect the inability of the Soviet-style economy to
modernize capital plant and motivate workers. GNP declined by 1% in 1989
and by an estimated 6% in 1990. Since 1985 external debt has more than
doubled, to over $20 billion. In recent years Hungary has experimented
widely with decentralized and market-oriented enterprises. The newly
democratic government has renounced the Soviet economic growth model and
plans to open the economy to wider market forces and to much closer
economic relations with Western Europe. Prime Minister Antall has
declared his intention to move foward on privatization of state
enterprises, provision for bankruptcy, land reform, and marketization of
international trade, but concerns over acceptable levels of unemployment
and inflation may slow the reform process.

_#_GNP: $60.9 billion, per capita $5,800; real growth rate - 5.7%
(1990 est.)

_#_Inflation rate (consumer prices): 30% (1990 est.)

_#_Unemployment rate: 1.7% (1990)

_#_Budget: revenues $18.2 billion; expenditures $18.3 billion,
including capital expenditures of $805 million (1989)

_#_Exports: $10.2 billion (f.o.b. 1989);

commodities--capital goods 33%, foods 25%, consumer goods 16%,
fuels 1.5%, other 24.5%;

partners USSR and Eastern Europe 42%, developed countries 37.4%,
less developed countries 20.6% (1989)

_#_Imports: $10.1 billion (c.i.f., 1989);

commodities--capital goods 15%, fuels 20%, manufactured
consumer goods 12.4%, agriculture 5%, other 47.6%;

partners--USSR and Eastern Europe 34.9%, developed countries 45.5%,
less developed countries 16.6%, US 3%

_#_External debt: $20.7 billion (1989)

_#_Industrial production: growth rate - 7.9% (1990 est.)

_#_Electricity: 7,800,000 kW capacity; 30,400 million kWh produced,
2,870 kWh per capita (1990)

_#_Industries: mining, metallurgy, engineering industries, processed
foods, textiles, chemicals (especially pharmaceuticals)

_#_Agriculture: including forestry, accounts for about 15% of GNP
an