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Economy - overview:
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Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $60 billion since 1989. Hungary issues investment-grade sovereign debt. International observers, however, have expressed concerns over Hungary's fiscal and current account deficits. In 2007, Hungary eliminated a trade deficit that had persisted for several years. Inflation declined from 14% in 1998 to a low of 3.7% in 2006, but jumped to 7.8% in 2007. 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 4% of GDP by 2008, from about 6% in 2007. The government's austerity program of tax hikes and subsidy cuts has reduced Hungary's large budget deficit, but the reforms have dampened domestic consumption, slowing GDP growth to about 2% in 2007. The government will need to pass additional reforms to ensure the long-term stability of public finances. The government plans to eventually lower its public sector deficit to below 3% of GDP to adopt the euro.
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GDP (purchasing power parity):
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$191.7 billion (2007 est.)
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GDP (official exchange rate):
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$138.4 billion (2007 est.)
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GDP - real growth rate:
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1.3% (2007 est.)
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GDP - per capita (PPP):
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$19,300 (2007 est.)
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GDP - composition by sector:
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agriculture: 2.8%
industry: 31.5%
services: 65.8% (2007 est.)
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Labor force:
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4.19 million (2007 est.)
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Labor force - by occupation:
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agriculture: 5.5%
industry: 33.3%
services: 61.2% (2003)
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Unemployment rate:
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7.3% (2007 est.)
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Household income or consumption by percentage share:
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lowest 10%: 4%
highest 10%: 22.2% (2002)
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Distribution of family income - Gini index:
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28 (2005)
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Investment (gross fixed):
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20.9% of GDP (2007 est.)
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Budget:
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revenues: $64 billion
expenditures: $71.87 billion (2007 est.)
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Public debt:
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67% of GDP (2007 est.)
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Inflation rate (consumer prices):
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8% (2007 est.)
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Central bank discount rate:
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7.5% (31 December 2007)
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Commercial bank prime lending rate:
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9.09% (31 December 2007)
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Stock of money:
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$36.78 billion (31 December 2007)
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Stock of quasi money:
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$43.07 billion (31 December 2007)
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Stock of domestic credit:
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$109.5 billion (31 December 2007)
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Agriculture - products:
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wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products
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Industries:
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mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles
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Industrial production growth rate:
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3.5% (2007 est.)
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Electricity - production:
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37.66 billion kWh (2007 est.)
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Electricity - consumption:
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37.11 billion kWh (2006 est.)
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Electricity - exports:
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10.69 billion kWh (2007 est.)
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Electricity - imports:
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14.68 billion kWh (2007 est.)
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Oil - production:
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32,580 bbl/day (2007 est.)
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Oil - consumption:
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162,800 bbl/day (2007 est.)
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Oil - exports:
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66,660 bbl/day (2005)
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Oil - imports:
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178,400 bbl/day (2005)
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Oil - proved reserves:
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20.18 million bbl (1 January 2008 est.)
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Natural gas - production:
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2.545 billion cu m (2007 est.)
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Natural gas - consumption:
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13.36 billion cu m (2007 est.)
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Natural gas - exports:
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138 million cu m (2007 est.)
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Natural gas - imports:
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10.45 billion cu m (2007 est.)
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Natural gas - proved reserves:
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8.098 billion cu m (1 January 2008 est.)
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Current account balance:
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-$8.018 billion (2007 est.)
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Exports:
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$87.77 billion f.o.b. (2007 est.)
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Exports - commodities:
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machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6% (2003)
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Exports - partners:
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Germany 28.1%, Italy 5.6%, France 4.7%, Austria 4.6%, Romania 4.5%, UK 4.5%, Slovakia 4.2%, Poland 4.2% (2007)
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Imports:
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$86.88 billion f.o.b. (2007 est.)
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Imports - commodities:
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machinery and equipment 51.6%, other manufactures 35.7%, fuels and electricity 7.7%, food products 3.1%, raw materials 2.0% (2003)
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Imports - partners:
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Germany 26.6%, China 7.8%, Russia 6.9%, Austria 6.1%, Italy 4.5%, France 4.3%, Netherlands 4.3% (2007)
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Reserves of foreign exchange and gold:
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$24.05 billion (31 December 2007 est.)
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Debt - external:
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$125.9 billion (31 December 2007)
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Stock of direct foreign investment - at home:
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$108.6 billion (2007 est.)
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Stock of direct foreign investment - abroad:
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$45.54 billion (2007 est.)
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Market value of publicly traded shares:
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$41.93 billion (2006)
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Currency (code):
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forint (HUF)
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Exchange rates:
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forints (HUF) per US dollar - 186.16 (2007), 210.39 (2006), 199.58 (2005), 202.75 (2004), 224.31 (2003)
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