Overview: The policies of the postwar government were to move Hungary from a predominately agricultural economy to an industrialized one. Consequently, the share of the labor force in agriculture dropped from over 50% in 1950 to under 20% in 1988. Agriculture, nevertheless, still remains an important sector, providing significant export earnings and fulfilling domestic food needs. Industry, 96% socialized, accounts for about 40% of GNP and 31% of employment. The economy is heavily dependent on international trade, with flows about equally divided between Communist and non-Communist countries. During the period 1985-88 economic performance was poor; in 1985 real GNP declined 2.6% and in 1988 grew by only 1.1%, reflecting disappointing results in both industry and agriculture, while external debt doubled to nearly $18 billion. In recent years Hungary has moved further than any other East European country in experimenting with decentralized and market-oriented enterprises. These experiments have failed to invigorate the economy because of chronic shortages of inputs from the state sector and the unwillingness of the central authorities to dismantle the basic command structure.

GNP: $91.8 billion, per capita $8,670; real growth rate 1.1% (1988)

Inflation rate (consumer prices): NA

Unemployment rate: NA

Budget: revenues $12.6 billion; expenditures $13.1 billion, including capital expenditures of $0.9 billion (1987 est.)

Exports: $9.6 billion (f.o.b. 1987); @m5commodities--capital goods 36%, foods 24%, consumer goods 18%, fuels and minerals 11%, other 11%; @m5partners USSR 48%, Eastern Europe 25%, developed countries 16%, less developed countries 8% (1987)

Imports: $9.8 billion (c.i.f., 1987); @m5commodities--machinery and transport 28%, fuels 20%, chemical products 14%, manufactured consumer goods 16%, agriculture 6%, other 16%; @m5partners--USSR 43%, Eastern Europe 28%, less developed countries 23%, US 3% (1987)

External debt: $17.7 billion (1987)

Industrial production: growth rate 2.6% (1987)

Electricity: 7,240,000 kW capacity; 30,160 million kWh produced, 2,850 kWh per capita (1988)

Industries: mining, metallurgy, engineering industries, processed foods, textiles, chemicals (especially pharmaceuticals)

Agriculture: normally self-sufficient; corn, wheat, potatoes, sugar beets, barley

Aid: NA

Currency: forint (plural--forints); 1 forint (Ft) = 100 filler

Exchange rates: forints (Ft) per US$1--53.291 (January 1989), 50.413 (1988), 46.971 (1987), 45.832 (1986), 50.119 (1985)

Fiscal year: calendar year

NOTE: The information regarding Hungary on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Hungary Economy 1989 information contained here. All suggestions for corrections of any errors about Hungary Economy 1989 should be addressed to the CIA.