ess:
Am Embassy, Unit 25402, APO AE 09213-5270
telephone:
[36] (1) 112-6450
FAX:
[36] (1) 132-8934
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*Hungary, Economy

Overview:
Hungary is in the midst of a difficult transition from a command to a market
economy. Agriculture is an important sector, providing sizable export
earnings and meeting domestic food needs. Industry accounts for about 40% of
GDP and 30% of employment. Hungary claims that less than 25% of foreign
trade is now with former CEMA countries, while about 70% is with OECD
members. Hungary's economic reform programs during the Communist era gave it
a head start in creating a market economy and attracting foreign investment.
In 1991, Hungary received 60% of all foreign investment in Eastern Europe,
and in 1992 received the largest single share. The growing private sector
accounts for about one-third of national output according to unofficial
estimates. Privatization of state enterprises is progressing, although
excessive red tape, bureaucratic oversight, and uncertainties about pricing
have slowed the process. Escalating unemployment and high rates of inflation
may impede efforts to speed up privatization and budget reform, while
Hungary's heavy foreign debt will make the government reluctant to introduce
full convertibility of the forint before 1994 and to rein in inflation. The
government is projecting an end to the 5-year recession in 1993, and GDP is
forecast to grow 0%-3%.
National product:
GDP - purchasing power equivalent - $55.4 billion (1992 est.)
National product real growth rate:
-5% (1992 est.)
National product per capita:
$5,380 (1992 est.)
Inflation rate (consumer prices):
23% (1992 est.)
Unemployment rate:
12.3% (1992)
Budget:
revenues $13.2 billion; expenditures $15.4 billion, including capital
expenditures $NA (1993 est.)
Exports:
$10.9 billion (f.o.b., 1992 est.)
commodities:
raw materials, semi-finished goods, chemicals 35.5%, machinery 13.5%, light
industry 23.3%, food and agricultural 24.8%, fuels and energy 2.8%
partners:
OECD 70.7%, (EC 50.1%, EFTA 15.0%), LDCs 5.1%, former CEMA members 23.2%,
others 1.0% (1991)
Imports:
$11.7 billion (f.o.b., 1992 est.)
commodities:
fuels and energy 14.9%, raw materials, semi-finished goods, chemicals 37.6%,
machinery 19.7%, light industry 21.5%, food and agricultural 6.3%
partners: