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Hungary Economy 2019

SOURCE: 2019 CIA WORLD FACTBOOK AND OTHER SOURCES











Hungary Economy 2019
SOURCE: 2019 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 08, 2019

Economy - overview:
Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income approximately two-thirds of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth.

Following the fall of communism in 1990, Hungary experienced a drop-off in exports and financial assistance from the former Soviet Union. Hungary embarked on a series of economic reforms, including privatization of state-owned enterprises and reduction of social spending programs, to shift from a centrally planned to a market-driven economy, and to reorient its economy towards trade with the West. These efforts helped to spur growth, attract investment, and reduce Hungary’s debt burden and fiscal deficits. Despite these reforms, living conditions for the average Hungarian initially deteriorated as inflation increased and unemployment reached double digits. Conditions slowly improved over the 1990s as the reforms came to fruition and export growth accelerated. Economic policies instituted during that decade helped position Hungary to join the European Union in 2004. Hungary has not yet joined the euro-zone. Hungary suffered a historic economic contraction as a result of the global economic slowdown in 2008-09 as export demand and domestic consumption dropped, prompting it to take an IMF-EU financial assistance package.

Since 2010, the government has backpedaled on many economic reforms and taken a more populist approach towards economic management. The government has favored national industries and government-linked businesses through legislation, regulation, and public procurements. In 2011 and 2014, Hungary nationalized private pension funds, which squeezed financial service providers out of the system, but also helped Hungary curb its public debt and lower its budget deficit to below 3% of GDP, as subsequent pension contributions have been channeled into the state-managed pension fund. Hungary’s public debt (at 74.5% of GDP) is still high compared to EU peers in Central Europe. Real GDP growth has been robust in the past few years due to increased EU funding, higher EU demand for Hungarian exports, and a rebound in domestic household consumption. To further boost household consumption ahead of the 2018 election, the government embarked on a six-year phased increase to minimum wages and public sector salaries, decreased taxes on foodstuffs and services, cut the personal income tax from 16% to 15%, and implemented a uniform 9% business tax for small and medium-sized enterprises and large companies. Real GDP growth slowed in 2016 due to a cyclical decrease in EU funding, but increased to 3.8% in 2017 as the government pre-financed EU funded projects ahead of the 2018 election.

Systemic economic challenges include pervasive corruption, labor shortages driven by demographic declines and migration, widespread poverty in rural areas, vulnerabilities to changes in demand for exports, and a heavy reliance on Russian energy imports.

GDP (purchasing power parity):
$289.6 billion (2017 est.)
$278.5 billion (2016 est.)
$272.5 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 59
[see also: GDP country ranks ]

GDP (official exchange rate):
$139.2 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4% (2017 est.)
2.2% (2016 est.)
3.4% (2015 est.)
country comparison to the world: 76
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$29,600 (2017 est.)
$28,300 (2016 est.)
$27,600 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 68
[see also: GDP - per capita country ranks ]

Gross national saving:
25.7% of GDP (2017 est.)
25.8% of GDP (2016 est.)
25.3% of GDP (2015 est.)
country comparison to the world: 54
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 49.6% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 20% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 21.6% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 1% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 90.2% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -82.4% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 3.9% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 31.3% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 64.8% (2017 est.)
[see also: GDP - composition, by sector of origin - services 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:
7.4% (2017 est.)
country comparison to the world: 29
[see also: Industrial production growth rate country ranks ]

Labor force:
4.599 million (2017 est.)
country comparison to the world: 87
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 4.9%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 30.3%
[see also: Labor force - by occupation - industry country ranks ]
services: 64.5% (2015 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
4.2% (2017 est.)
5.1% (2016 est.)
country comparison to the world: 54
[see also: Unemployment rate country ranks ]

Population below poverty line:
14.9% (2015 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3.3%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 22.4% (2015)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
28.2 (2015 est.)
28.6 (2014)
country comparison to the world: 140
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 61.98 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 64.7 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
44.5% (of GDP) (2017 est.)
country comparison to the world: 23
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-2% (of GDP) (2017 est.)
note: Hungary has been under the EU Excessive Deficit Procedure since it joined the EU in 2004; in March 2012, the EU elevated its Excessive Deficit Procedure against Hungary and proposed freezing 30% of the country's Cohesion Funds because 2011 deficit reductions were not achieved in a sustainable manner; in June 2012, the EU lifted the freeze, recognizing that steps had been taken to reduce the deficit; the Hungarian deficit increased above 3% both in 2013 and in 2014 due to sluggish growth and the government's fiscal tightening
country comparison to the world: 104
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
73.6% of GDP (2017 est.)
76% of GDP (2016 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 national, state, and local government and social security funds.
country comparison to the world: 43
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
2.4% (2017 est.)
0.4% (2016 est.)
country comparison to the world: 119
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0.9% (31 December 2017)
0.9% (31 December 2016)
country comparison to the world: 134
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
1.48% (31 December 2017 est.)
2.09% (31 December 2016 est.)
country comparison to the world: 190
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$74.77 billion (31 December 2017 est.)
$55.48 billion (31 December 2016 est.)
country comparison to the world: 46
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$74.77 billion (31 December 2017 est.)
$55.48 billion (31 December 2016 est.)
country comparison to the world: 46
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$86.22 billion (31 December 2017 est.)
$69.76 billion (31 December 2016 est.)
country comparison to the world: 56
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$27.7 billion (31 December 2017 est.)
$22.4 billion (31 December 2016 est.)
$17.69 billion (31 December 2015 est.)
country comparison to the world: 58
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$4.39 billion (2017 est.)
$7.597 billion (2016 est.)
country comparison to the world: 30
[see also: Current account balance country ranks ]

Exports:
$98.74 billion (2017 est.)
$91.6 billion (2016 est.)
country comparison to the world: 38
[see also: Exports country ranks ]

Exports - partners:
Germany 27.7%, Romania 5.4%, Italy 5.1%, Austria 5%, Slovakia 4.8%, France 4.4%, Czech Republic 4.4%, Poland 4.3% (2017)

Exports - commodities:
machinery and equipment (55.8%), other manufactures (32.7%), food products (6.8%), raw materials (2.4%), fuels and electricity (2.3%) (2017 est.)

Imports:
$96.3 billion (2017 est.)
$83.5 billion (2016 est.)
country comparison to the world: 35
[see also: Imports country ranks ]

Imports - commodities:
machinery and equipment 45.4%, other manufactures 34.3%, fuels and electricity 12.6%, food products 5.3%, raw materials 2.5% (2012)

Imports - partners:
Germany 26.2%, Austria 6.3%, China 5.9%, Poland 5.5%, Slovakia 5.3%, Netherlands 5%, Czech Republic 4.8%, Italy 4.7%, France 4% (2017)

Reserves of foreign exchange and gold:
$28 billion (31 December 2017 est.)
$25.82 billion (31 December 2016 est.)
country comparison to the world: 52
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$138.1 billion (31 December 2017 est.)
$131.3 billion (31 December 2016 est.)
country comparison to the world: 43
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$290 billion (31 December 2017 est.)
$298.2 billion (31 December 2016 est.)
country comparison to the world: 22
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$212 billion (31 December 2017 est.)
$222.6 billion (31 December 2016 est.)
country comparison to the world: 27
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
forints (HUF) per US dollar -
279.5 (2017 est.)
281.52 (2016 est.)
281.52 (2015 est.)
279.33 (2014 est.)
232.6 (2013 est.)


NOTE: 1) The information regarding Hungary on this page is re-published from the 2019 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Hungary Economy 2019 information contained here. All suggestions for corrections of any errors about Hungary Economy 2019 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) They assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assignes counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order






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