Page last updated on February 5, 2013
Economy - overview:
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-27 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 worth more than $70 billion. In late 2008, Hungary's impending inability to service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an IMF/EU/World Bank-arranged financial assistance package worth over $25 billion. The global economic downturn, declining exports, and low domestic consumption and fixed asset accumulation, dampened by government austerity measures, resulted in an economic contraction of 6.8% in 2009. In 2010 the new government implemented a number of changes including cutting business and personal income taxes, but imposed "crisis taxes" on financial institutions, energy and telecom companies, and retailers. The IMF/EU bail-out program lapsed at the end of the year and was replaced by Post Program Monitoring and Article IV Consultations on overall economic and fiscal processes. The economy began to recover in 2010 with a big boost from exports, especially to Germany, and achieved growth of approximately 1.7% in 2011. At the end of 2011 the government turned to the IMF and the EU to obtain financial backstop to support its efforts to refinance foreign currency debt and bond obligations in 2012 and beyond, but Budpest's rejection of EU and IMF economic policy recommendations led to a breakdown in talks with the lenders in late 2012. Since joining the EU in 2004, Hungary has been subject to the European Commisssion's Excessive Deficit Procedure; Brussels has requested that the government outline measures to sustainably reduce the budget deficit to under 3% of GDP. Ongoing economic weakness in Western Europe caused a GDP to fall 1% in 2012. Unemployment remained high, at more than 11%.
GDP (purchasing power parity):
$196.8 billion (2012 est.)
country comparison to the world: 56
$198.8 billion (2011 est.)
$195.5 billion (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP country ranks ]
GDP (official exchange rate):
$128.8 billion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
-1% (2012 est.)
country comparison to the world: 199
1.7% (2011 est.)
1.3% (2010 est.)
[see also:
GDP - real growth rate country ranks ]
GDP - per capita:
$19,800 (2012 est.)
country comparison to the world: 65
$19,900 (2011 est.)
$19,500 (2010 est.)
note:
data are in 2012 US dollars
[see also:
GDP - per capita country ranks ]
GDP - composition by sector:
agriculture: 4.2%
[see also: GDP - composition by sector - agriculture country ranks ]
industry:
30.1%
services:
65.7% (2012 est.)
Labor force:
4.178 million (2012 est.)
country comparison to the world: 89
[see also: Labor force country ranks ]
Labor force - by occupation:
agriculture: 4.7%
[see also: Labor force - by occupation - agriculture country ranks ]
industry:
30.9%
services:
64.4% (2010 est.)
Unemployment rate:
11.2% (2012 est.)
country comparison to the world: 122
10.9% (2011 est.)
[see also:
Unemployment rate country ranks ]
Population below poverty line:
13.9% (2010)
[see also: Population below poverty line country ranks ]
Household income or consumption by percentage share:
lowest 10%: 3.1%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%:
22.6% (2009)
Distribution of family income - Gini index:
24.7 (2009)
country comparison to the world: 134
24.4 (1998)
[see also:
Distribution of family income - Gini index country ranks ]
Investment (gross fixed):
15.6% of GDP (2012 est.)
country comparison to the world: 135
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $55.05 billion
[see also: Budget revenues country ranks ]
expenditures:
$58.55 billion (2012 est.)
Taxes and other revenues:
42.7% of GDP (2012 est.)
country comparison to the world: 40
[see also: Taxes and other revenues country ranks ]
Budget surplus (+) or deficit (-):
-2.7% of GDP
country comparison to the world: 94
note:
in 2011, the Government decided to redirect funds from the country's obligatory private pension scheme into state coffers in order to pay off government debt, effectively renationalizing the private pension system; the 2.9% deficit shown here does not include this change; including this change would result in a budget surplus of 3.6%; the EU renewed its Excessive Deficit Procedure against Hungary in January 2012, because it expects the 2013 deficit to reach 3.7%; the primary criticism of Hungary's deficit reductions in 2011 and 2012 was that they were not achieved in a sustainable manner (2012 est.)
[see also: Budget surplus (+) or deficit (-) country ranks ]
Public debt:
81.3% of GDP (2012 est.)
country comparison to the world: 25
80.8% of GDP (2011 est.)
note:
general government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year in the following categories of government liabilities: currency and deposits, securities other than shares excluding financial derivatives, and government, state government, local government, and social security funds.
[see also:
Public debt country ranks ]
Inflation rate (consumer prices):
5.6% (2012 est.)
country comparison to the world: 153
3.9% (2011 est.)
[see also:
Inflation rate (consumer prices) country ranks ]
Central bank discount rate:
5.75% (18 December 2012)
country comparison to the world: 41
7% (31 December 2011)
[see also:
Central bank discount rate country ranks ]
Commercial bank prime lending rate:
8.5% (31 December 2012 est.)
country comparison to the world: 115
8.34% (31 December 2011 est.)
[see also:
Commercial bank prime lending rate country ranks ]
Stock of narrow money:
$30.63 billion (31 December 2012 est.)
country comparison to the world: 57
$30.51 billion (31 December 2011 est.)
[see also:
Stock of narrow money country ranks ]
Stock of broad money:
$74.5 billion (31 December 2011 est.)
country comparison to the world: 60
$80.68 billion (31 December 2010 est.)
[see also:
Stock of broad money country ranks ]
Stock of domestic credit:
$85.67 billion (31 December 2012 est.)
country comparison to the world: 56
$88.6 billion (31 December 2011 est.)
[see also:
Stock of domestic credit country ranks ]
Market value of publicly traded shares:
$18.77 billion (31 December 2011 est.)
country comparison to the world: 59
$27.71 billion (31 December 2010)
$28.29 billion (31 December 2009)
[see also:
Market value of publicly traded shares country ranks ]
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:
5.4% (2011 est.)
country comparison to the world: 61
[see also: Industrial production growth rate country ranks ]
Current account balance:
$2.146 billion (2012 est.)
country comparison to the world: 38
$2.055 billion (2011 est.)
[see also:
Current account balance country ranks ]
Exports:
$105.1 billion (2012 est.)
country comparison to the world: 39
$107.1 billion (2011 est.)
[see also:
Exports country ranks ]
Exports - commodities:
machinery and equipment 55.3%, other manufactures 30.6%, food products 7.4%, raw materials 3.2%, fuels and electricity 3.3% (2009 est.)
Exports - partners:
Germany 25%, Romania 5.7%, Austria 5.4%, Slovakia 5.4%, Italy 5%, France 4.8%, UK 4.6% (2011)
Imports:
$100.8 billion (2012 est.)
country comparison to the world: 35
$101.5 billion (2011 est.)
[see also:
Imports country ranks ]
Imports - commodities:
machinery and equipment 44.7%, other manufactures 41.3%, fuels and electricity 5.1%, food products, raw materials 6.7%
Imports - partners:
Germany 24.7%, Russia 8.6%, China 8.4%, Austria 6.2%, Slovakia 4.9%, Poland 4.7%, Netherlands 4.4%, Italy 4.3% (2011)
Reserves of foreign exchange and gold:
$44.9 billion (31 December 2012 est.)
country comparison to the world: 40
