nd New York

Diplomatic representation from the US:
chief of mission: Ambassador Peter F. TUFO
embassy: V. 1054 Szabadsag Ter 12, Budapest
mailing address: pouch: American Embassy Budapest, Department of
State, Washington, DC 20521-5270

Flag description: three equal horizontal bands of red (top),
white, and green

Economy

Economy--overview: Hungary has consolidated its March 1995
stabilization program and undergone enough restructuring to become
an established market economy. The country appears to have entered a
period of sustainable growth, gradually falling inflation, and
stable external balances. The government's main economic priorities
are to complete structural reforms, particularly the implementation
of the 1997 pension reform act (the first in the region), taxation
reform, and planning for comprehensive health care, local government
finance reform, and the reform of education at all levels. Foreign
investment has totaled more than $17 billion through 1998. In
recognition of Hungary's improved macroeconomic situation, all major
credit-rating agencies listed the country's foreign currency debt
issuances as investment grade in 1996. The current IMF stand-by
arrangement expired in February 1998, and Budapest and the IMF agree
that there is no need to renew it. The OECD welcomed Hungary as a
member in May 1996, and in December 1997 the EU invited Hungary to
begin the accession process. Forecasters expect 4%-5% growth in 1999.

GDP: purchasing power parity--$75.4 billion (1998 est.)

GDP--real growth rate: 5% (1998 est.)

GDP--per capita: purchasing power parity?$7,400 (1998 est.)

GDP--composition by sector:
agriculture: 3%
industry: 30.3%
services: 66.7% (1996)

Population below poverty line: 25.3% (1993 est.)

Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 24% (1993)

Inflation rate (consumer prices): 14% (1998 est.)

Labor force: 4.2 million (1997)

Labor force--by occupation: services 65%, industry 26.7%,
agriculture 8.3 (1996)

Unemployment rate: 10.8% (1997)

Budget:
revenues: $11.2 billion
expenditures: $13.2 billion, including capital expenditures of $NA
(1998 est.)

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

Industrial production growth rate: 11.1% (1997 est.)

Electricity--