Hungary - Economic Indicators

Central Europe, northwest of Romania

47 00 N, 20 00 E

Europe

slightly smaller than Virginia; about the same size as Indiana

0 km (landlocked)

none (landlocked)

temperate; cold, cloudy, humid winters; warm summers

mostly flat to rolling plains; hills and low mountains on the Slovakian border

highest point: Kekes 1,014 m

bauxite, coal, natural gas, fertile soils, arable land

arable land 48.5%; permanent crops 2%; permanent pasture 8.4%

1,721 sq km (2012)

a fairly even distribution throughout most of the country, with urban areas attracting larger and denser populations

air and water pollution are some of Hungary's most serious environmental problems; water quality in the Hungarian part of the Danube has improved but is still plagued by pollutants from industry and large-scale agriculture; soil pollution

landlocked; strategic location astride main land routes between Western Europe and Balkan Peninsula as well as between Ukraine and Mediterranean basin; the north-south flowing Duna (Danube) and Tisza Rivers divide the country into three large regions

9,850,845 (July 2017 est.)

Hungarian 85.6%, Romani 3.2%, German 1.9%, other 2.6%, unspecified 14.1% (2011 est.)

Hungarian (official) 99.6%, English 16%, German 11.2%, Russian 1.6%, Romanian 1.3%, French 1.2%, other 4.2%

Roman Catholic 37.2%, Calvinist 11.6%, Lutheran 2.2%, Greek Catholic 1.8%, other 1.9%, none 18.2%, unspecified 27.2% (2011 est.)

-0.25% (2017 est.)

9 births/1,000 population (2017 est.)

12.8 deaths/1,000 population (2017 est.)

1.3 migrant(s)/1,000 population (2017 est.)

a fairly even distribution throughout most of the country, with urban areas attracting larger and denser populations

BUDAPEST (capital) 1.714 million (2015)

28.3 years (2014 est.)

17 deaths/100,000 live births (2015 est.)

1.45 children born/woman (2017 est.)

7.4% of GDP (2014)

3.09 physicians/1,000 population (2015)

7 beds/1,000 population (2013)

urban: 100% of population

rural: 100% of population

total: 100% of population

urban: 0% of population

rural: 0% of population

total: 0% of population (2015 est.)

urban: 97.8% of population

rural: 98.6% of population

total: 98% of population

urban: 2.2% of population

rural: 1.4% of population

total: 2% of population (2015 est.)

NA

NA

NA

26.4% (2016)

4.6% of GDP (2014)

parliamentary republic

19 counties (megyek, singular - megye), 23 cities with county rights (megyei jogu varosok, singular - megyei jogu varos), and 1 capital city (fovaros)

16 November 1918 (republic proclaimed); notable earlier dates: 25 December 1000 (crowning of King STEPHEN I, traditional founding date); 30 March 1867 (Austro-Hungarian dual monarchy established)

Saint Stephen's Day, 20 August (1083); note - commemorates his cannonization and the transfer of his remains to Buda (now Budapest) in 1083

civil legal system influenced by the German model

accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction

18 years of age, 16 if married and marriage registered in Hungary; universal

Christian Democratic People's Party or KDNP [Zsolt SEMJEN]

Democratic Coalition or DK [Ferenc GYURCSANY]

Dialogue for Hungary or PM [Gergely KARACSONY, Timea SZABO]

Fidesz-Hungarian Civic Alliance or Fidesz [Viktor ORBAN]

Hungarian Liberal Party or MLP [Gabor FODOR]

Hungarian Socialist Party or MSZP [Gyula MOLNAR]

Movement for a Better Hungary or Jobbik [Janos VOLNER]

National Self-Government of Germans in Hungary or LdU [Otto HEINEK]

Politics Can Be Different or LMP [Akos HADHAZI, Bernadett SZEL]

Together 2014 or Egyutt or E14 [Peter JUHASZ]

Momentum (Momentum Mozgalom) [Andras FEKETE-GYOR]

Civil Osszefogas Forum ("Civil Unity Forum," nominally independent organization that serves as the steering committee for the pro-government mass organization Bekemenet (Peace March), supporting ORBAN government's policies; increasingly inactive in Orban’s second consecutive term from 2014)

Hungarian Civil Liberties Union (Tarsasag a Szabadsagjogokert) or TASZ (freedom of expression, information privacy)

Hungarian Helsinki Committee (asylum seekers' rights, human rights in law enforcement and the judicial system)

MigSzol (Migrant Solidarity Group of Hungary) (independent advocacy group on migration crisis)

MostMi ("Now Us") [Bori TAKACS](Facebook group that was a major participant at anti-government demonstrations in late 2014-early 2015; pro-Europe, anti-establishment movement that blames Fidesz for the state of the country but also blames all established political parties for perceived political and economic failures since the fall of communism)

Okotars (empowerment of civil society in Hungary)

Greenpeace Hungary (Greenpeace Magyarorszag)

Australia Group, BIS, CD, CE, CEI, CERN, EAPC, EBRD, ECB, EIB, ESA (cooperating state), EU, FAO, G-9, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, NATO, NEA, NSG, OAS (observer), OECD, OIF (observer), OPCW, OSCE, PCA, Schengen Convention, SELEC, UN, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, UNIFIL, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO, ZC

three equal horizontal bands of red (top), white, and green; the flag dates to the national movement of the 18th and 19th centuries, and fuses the medieval colors of the Hungarian coat of arms with the revolutionary tricolor form of the French flag; folklore attributes virtues to the colors: red for strength, white for faithfulness, and green for hope; alternatively, the red is seen as being for the blood spilled in defense of the land, white for freedom, and green for the pasturelands that make up so much of the country

Holy Crown of Hungary (Crown of Saint Stephen); national colors: red, white, green

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.

The economy is largely driven by exports, making it vulnerable to external market shocks. 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. However, 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 yet to join the euro-zone, however. 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 reforms and taken a more nationalist and populist approach towards economic management. The government has favored national industries, and specifically government-linked businesses, through legislation, regulation, and public procurements. In 2010 and 2012, the government increased taxes on foreign-dominated sectors, such as banking and retail, because the move helped to raise revenues and decrease the budget deficit, thereby allowing Hungary to maintain access to EU development funds. The policy deterred private investment, however. In 2011 and 2014, Hungary nationalized private pension funds. The move squeezed financial service providers out of the system, but it 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 73.9% of GDP) is still high compared to EU peers in Central Europe. Despite these reversals, real GDP growth has remained robust in the past several years because EU funding increased, EU demand for Hungarian exports rose, and domestic household consumption rebounded. To further boost household consumption ahead of an anticipated 2018 election, the government has announced plans to increase the minimum wage and public sector salaries, decrease taxes on foodstuffs and services, cut the personal income tax from 16% to 15%, and introduce 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, in part as Budapest front-loaded drawdowns of EU funds ahead of the planned 2018 election.

Systemic economic challenges include pervasive corruption, long-term and youth unemployment, skilled labor shortages, widespread poverty in rural areas, vulnerabilities to changes in demand for exports, and a heavy reliance on Russian energy imports.

$283.6 billion (2017 est.)

$274.8 billion (2016 est.)

$269.5 billion (2015 est.)

$132 billion (2017 est.)

3.2% (2017 est.)

2% (2016 est.)

3.1% (2015 est.)

$28,900 (2017 est.)

$28,000 (2016 est.)

$27,300 (2015 est.)

24.4% of GDP (2017 est.)

24.5% of GDP (2016 est.)

25.1% of GDP (2015 est.)

wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products

mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles

5.5% (2017 est.)

4.599 million (2017 est.)

4.4% (2017 est.)

5.1% (2016 est.)

14.9% (2015 est.)

28.2 (2015 est.)

28.6 (2014 est.)

48.2% of GDP (2017 est.)

-2.5% of GDP

73.9% of GDP (2017 est.)

74.1% of GDP (2016 est.)

calendar year

2.5% (2017 est.)

0.4% (2016 est.)

0.9% (31 December 2017 est.)

1.35% (31 December 2016 est.)

1.6% (31 December 2017 est.)

2.09% (31 December 2016 est.)

$68.36 billion (31 December 2017 est.)

$55.64 billion (31 December 2016 est.)

$80.77 billion (31 December 2017 est.)

$69.25 billion (31 December 2016 est.)

$77.36 billion (31 December 2017 est.)

$70.11 billion (31 December 2016 est.)

$21.59 billion (31 December 2017 est.)

$17.69 billion (31 December 2016 est.)

$14.51 billion (31 December 2015 est.)

$6.339 billion (2017 est.)

$6.797 billion (2016 est.)

$98.72 billion (2017 est.)

$91.6 billion (2016 est.)

machinery and equipment 53.4%, other manufactures 31.2%, food products 8.4%, raw materials 3.4%, fuels and electricity 3.9% (2012 est.)

Germany 28.2%, Romania 5.2%, Slovakia 5%, Austria 4.9%, France 4.8%, Italy 4.8%, Czech Republic 4.2%, Poland 4.2% (2016)

$93.28 billion (2017 est.)

$85.78 billion (2016 est.)

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

Germany 26.3%, Austria 6.4%, China 6.3%, Poland 5.5%, Slovakia 5.3%, Netherlands 4.9%, Czech Republic 4.9%, France 4.8%, Italy 4.8% (2016)

$27.02 billion (31 December 2017 est.)

$25.82 billion (31 December 2016 est.)

$131.8 billion (31 December 2017 est.)

$131.3 billion (31 December 2016 est.)

$302.9 billion (31 December 2017 est.)

$298.2 billion (31 December 2016 est.)

$225.3 billion (31 December 2017 est.)

$222.6 billion (31 December 2016 est.)

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.)

28.67 billion kWh (2015 est.)

38.66 billion kWh (2015 est.)

5.24 billion kWh (2016 est.)

17.95 billion kWh (2016 est.)

8.468 million kW (2015 est.)

64.5% of total installed capacity (2015 est.)

22.3% of total installed capacity (2015 est.)

0.7% of total installed capacity (2015 est.)

14.1% of total installed capacity (2015 est.)

13,830 bbl/day (2016 est.)

1,042 bbl/day (2016 est.)

120,400 bbl/day (2016 est.)

25.1 million bbl (1 January 2017 est.)

156,100 bbl/day (2016 est.)

157,200 bbl/day (2016 est.)

50,510 bbl/day (2016 est.)

67,860 bbl/day (2016 est.)

1.772 billion cu m (2015 est.)

17.14 billion cu m (2015 est.)

545 million cu m (2015 est.)

6.79 billion cu m (2015 est.)

7.702 billion cu m (1 January 2017 est.)

44.2 million Mt (2015 est.)

mixed system of state-supported public service broadcast media and private broadcasters; the 5 publicly owned TV channels and the 2 main privately owned TV stations are the major national broadcasters; a large number of special interest channels; highly developed market for satellite and cable TV services with about two-thirds of viewers utilizing their services; 4 state-supported public-service radio networks; a large number of local stations including commercial, public service, nonprofit, and community radio stations; digital transition completed at the end of 2013; government-linked businesses have greatly consolidated ownership in broadcast and print media (2016)

.hu

HA (2016)

41 (2013)

3 (2013)

gas (high-pressure transmission system) 5,873 km; gas (low-pressure distribution network) 83,619 km (2015); oil 850 km; refined products 1,200 km (2016)

1,622 km (most on Danube River) (2011)

1.01% of GDP (2016)

0.93% of GDP (2015)

0.87% of GDP (2014)

0.95% of GDP (2013)

1.04% of GDP (2012)

Hungarian Defense Forces: Land Forces, Hungarian Air Force (Magyar Legiero, ML) (2011)

18-25 years of age for voluntary military service; no conscription; 6-month service obligation (2012)

bilateral government, legal, technical and economic working group negotiations continue in 2006 with Slovakia over Hungary's failure to complete its portion of the Gabcikovo-Nagymaros hydroelectric dam project along the Danube; as a member state that forms part of the EU's external border, Hungary has implemented the strict Schengen border rules

transshipment point for Southwest Asian heroin and cannabis and for South American cocaine destined for Western Europe; limited producer of precursor chemicals, particularly for amphetamine and methamphetamine; efforts to counter money laundering, related to organized crime and drug trafficking are improving but remain vulnerable; significant consumer of ecstasy