Economic overview: Hungary continues to show strong economic growth and is preparing to join the EU. More than 80% of the economy has been privatized. Foreign property acquisitions and investments in Hungarian firms by 2000 combined totaled $23 billion. Hungary’s public debt in 2000 is the second largest among Central European transition economies. Inflation – the most important economic problem in 2000 – is still high at almost 10%, driven by high world oil and gas prices and rising domestic food prices. Economic reforms such as health care reform, tax reform and restructuring of local government funding have not yet been initiated by the ORBAN government. See cheeroutdoor.com to know more about Hungary Business. GDP: at purchasing power parity – $113.9 billion (2000 est.). Real GDP growth rate: 5.5% (2000 est.). GDP per capita: Purchasing power parity – $11,200 (2000 est.). The composition of GDP by sectors of the economy: agriculture: 5%; industry: 35%; services: 60% (2000 est.). Proportion of population below the poverty line: 8.6% (1993 est.). Percentage distribution of family income or consumption: per 10% of the poorest families: 3.9%; by the top 10% of families: 24.8% (1996). Inflation rate at consumer prices: 9.8% (1999 est.). Labor force: 4.2 million people (1997). Employment structure: services 65%, industry 27%, agriculture 8% (1996). Unemployment rate: 9.4% (2000 est.). Budget: revenues: $13 billion; expenditures: $14.4 billion, including capital expenditures – NA (2000 est.). Economic sectors: mining, metallurgy, production of building materials, food industry, fabric production, chemical industry (especially pharmaceutical), vehicle production. Growth in industrial production: 18% (2000 est.). Electricity generation: 36.75 billion kWh (1999) Sources of electricity generation: fossil fuels: 61.09%; hydropower: 0.51%; nuclear fuel: 38.4%; other: 0% (1999 est.). Electricity consumption: 35.234 billion kWh (1999). Electricity export: 2.35 billion kWh (1999). Electricity import: 3.406 billion kWh (1999) Agricultural products: wheat, corn, sunflower seeds, potatoes, sugar beets; pigs, cattle, poultry, dairy products. Export: $25.2 billion (free on board, 2000) Export items: machinery and equipment 59.5%, other manufactured goods 29.4%, agricultural and food industry products 6.9%, raw materials 2.4%, fuel and electricity 1.8% (2000). Export partners: Germany 37%, Austria 9%, Italy 6%, Netherlands 5% (2000). Imports: $27.6 billion (free on board, 2000) Import articles: machinery and equipment 51.1%, other manufactured goods 35.9%, fuel and electricity 8.1%, food 2.8%, raw materials 2.1% (2000). Import partners: Germany 25%, Russia 8%, Austria 7%, Italy 7% (2000). External debt: $29.6 billion (2000) Economic aid recipient: $122.7 million (1995) Economic aid donor: Currency: forint. Currency code: HUF. Exchange rate: HUF/USD – 282.240 (January 2001), 282.179 (2000), 237.146 (1999), 214.402 (1998), 186.789 (1997), 152.647 (1996). Fiscal year: calendar year.
Telecommunications
Telecommunications Telephone lines: 3.095 million (1997). Mobile cell phones: 1.269 million (July 1999) Phone system: the telephone system has been modernized and is able to meet any requirements for telecommunications services; internal: digital and highly automated system; trunk communication is carried out using fiber optic cable and digital microwave radio relay; the program for the creation of fiber-optic subscriber communications was launched in 1996; mobile cellular communication is widely developed; international: Hungary is connected by fiber optic cables with all neighboring states; international exchange in Budapest; satellite earth stations: 2 Intelsat (Atlantic and Indian Ocean region), 1 Inmarsat, 1 very small aperture ground terminal system. Broadcast stations: AM – 17, FM – 57, shortwave – 3 (1998). Radio receivers: 7.01 million (1997) Television broadcast stations: 35 (and 161 low power stations) (1995). Televisions: 4.42 million (1997) Internet country code: hu Internet service providers: 16 (2000). Number of users: 650,000 (2000).
Transport
Transport Railways: total: 7,606 km; broad gauge: 36 km (1.524 m gauge); standard gauge: 7,394 km (1.435 m gauge) (2,270 km electrified; 1,236 km dual gauge); narrow gauge: 176 km (0.760 m gauge) (1998); note: Hungary and Austria jointly operate the Győr-Sopron-Ebenfurt standard gauge railway with a length of 101 km in Hungary and 65 km in Austria. Roads: total: 188,203 km; paved: 81,680 km (including 448 km of expressways); unpaved: 106,523 km (1998 est.) Waterways: 1,373 km permanently navigable (1997). Pipelines: for crude oil -1,204 km; for natural gas – 4,387 km (1991). Ports and harbors: Budapest, Dunaujváros. Merchant fleet: total: 1 ship (displacement 1,000 tons or more) with a total displacement of 1,199 gross register tons / 1,050 long tons of gross tonnage; various ships: cargo ships -1 (2000 est.). Airports: 43 (2000 est.). Airports with paved runways: total: 16; over 3,047 m: 2; from 2438 to 3047 m: 8; from 1,524 to 2,437 m: 4; from 914 to 1523 m:1; less than 914 m: 1 (2000 est.). Airports with unpaved runways: total: 27; from 2438 to 3047 m:3; from 1,524 to 2,437 m: 4; from 914 to 1523 m:12; less than 914 m: 8 (2000 est.). Helipads: 5 (2000 est.).
Armed forces
Branches of the armed forces: ground forces, air force; note – there is also a paramilitary border guard under the Ministry of the Interior. Enlistment age: 18 years old. Total Military Manpower: Male 15 to 49: 2,573,119 (2001 est.). Eligible for military service: men aged 15 to 49: 2,050,404 (2001 est.). Number of persons reaching military age each year: male: 64,121 (2001 est.). Military spending in dollar terms: $822 million (2000) Military spending as part of GDP: 1.6% (2000).
International Issues
International issues International disputes: dispute with Slovakia over the construction of a hydroelectric power station on the Danube in Gabčíkovo referred to the International Court of Justice. Illicit drugs: Major transit point for Southwest Asian heroin and marijuana and South American cocaine destined for Western Europe; limited production of chemicals needed to manufacture drugs, especially amphetamines and methamphetamines.
