| ECONOMY |
| Overview |
Hungary
has made the transition from a centrally planned to a market
economy, with a per capita income one-half that of the Big
Four European nations. Hungary continues to demonstrate strong
economic growth and to work toward accession to the European
Union in May 2004. The private sector accounts for over 80%
of GDP. Foreign ownership of and investment in Hungarian firms
are widespread, with cumulative foreign direct investment
totaling more than $23 billion since 1989. Hungarian sovereign
debt was upgraded in 2000 to the second-highest rating among
all the Central European transition economies. Inflation has
declined substantially, from 14% in 1998 to 4.7% in 2003;
unemployment has persisted around the 6% level. Germany is
by far Hungary's largest economic partner. Short-term issues
include the reduction of the public sector deficit to 3% in
2004 and avoiding unjustified increases in wages. |
| GDP |
purchasing
power parity - $134 billion (2002 est.) |
| GDP
- real growth rate |
3.3% (2002
est.) |
| GDP
- per capita |
purchasing
power parity - $13,300 (2002 est.) |
| GDP
- composition by sector |
agriculture:
4.1%
industry: 33.8%
services: 62.1% (2000 est.) |
| Population
below poverty line |
8.6% (1993
est.) |
| Inflation
rate (consumer prices) |
5.3% (2002
est.) |
| Labor
force |
4.2 million
(1997) |
| Labor
force - by occupation |
services
65%, industry 27%, agriculture 8% (1996) |
| Unemployment
rate |
5.8% (2002
est.) |
| Industries |
mining, metallurgy,
construction materials, processed foods, textiles, chemicals
(especially pharmaceuticals), motor vehicles |
| Industrial
production growth rate |
3.1% (2002
est.) |
