estment in
Hungarian firms are widespread, with cumulative foreign direct
investment totaling more than $60 billion since 1989. Hungarian
sovereign debt was upgraded in 2000 - together with the Czech
Republic, Hungary holds the highest rating among the Central
European transition economies. Rating agencies, however, have
expressed concerns over Hungary's fiscal and current account
deficits. Inflation has declined from 14% in 1998 to 3.7% in 2006.
Unemployment has persisted above 6%. Hungary's labor force
participation rate of 57% is one of the lowest in the Organization
for Economic Cooperation and Development (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
6.5% in 2006, and orchestrating an orderly interest rate reduction
without sparking capital outflows.

GDP (purchasing power parity):
$172.7 billion (2006 est.)

GDP (official exchange rate):
$113.1 billion (2006 est.)

GDP - real growth rate:
3.8% (2006 est.)

GDP - per capita (PPP):
$17,300 (2006 est.)

GDP - composition by sector:
agriculture: 3.1%
industry: 32.1%
services: 64.8% (2006 est.)

Labor force:
4.2 million (2006 est.)

Labor force - by occupation:
agriculture: 5.5%
industry: 33.3%
services: 61.2% (2003)

Unemployment rate:
7.4% (2006 est.)

Population below poverty line:
8.6%

Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 22.2% (2002)

Distribution of family income - Gini index:
26.9 (2002)

Inflation rate (consumer prices):
3.7% (2006 est.)

Investment (gross fixed):
23.4% of GDP (2006 est.)

Budget:
revenues: $48.73 billion
expenditures: $59.62 billion; including capital expenditures of $NA
(2006 est.)

Public debt:
68.6% of GDP (2006 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:
9.5% (2006 est.)

Electricity - production:
31.83 billion kWh (2004)

Electricity - production by source:
fossil fuel: 60.1%
hydro: 0.5%
nuclear: 39%
other: 0.3% (2001)

Electricity - consumption:
37.1 billion kWh (2004)

Electricity - exports: