Hungarian Economy

By: EconomyWatch   Date: 30 June 2010

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Hungary possess a market economy. Part of European Union, Hungary has a per capita income approximately two-thirds of the European Union average. The country enjoys a GDP real growth rate of 1.3%. Hungarian currency is the forint (HUF).

Hungary has successfully made the changeover from a centrally planned economy of the cold war years to a market economy in the 1990s. At present, the private sector makes up more than 80% of the nation's GDP. Foreign ownership of industry is prominent -with Foreign Direct Investment (FDI) in excess of $60 billion plunged into the country's economy. Investment made up 20.9% of gross Hungarian GDP in 2007. The Hungarian government at present issues investment-grade sovereign debt. The Hungarian currency is forint (HUF).

Hungary's economy clocked a GDP real growth rate of 1.3%. GDP (purchasing power parity) is calculated to be $191.7 billion (as of 2007). GDP per capita is approximately $19,300 (2007). Services sector form the dominant GDP sector contributing more than 65% to the Hungarian economy. Industry contributes approximately 31% and agriculture remaining 3%. Labor force comprises 4.19 million persons (2007). Majority of employable workforce are engaged in services (61.2%). Industry employs 33.3% and agriculture 5.5% of the total workforce. . The unemployment rate is 7.3% (2007). Rate of inflation (consumer prices) is 8%

Principal Hungarian industries include metallurgy, textiles, chemicals, mining, motor vehicles and construction materials. Industrial production growth rate is 3.5% (GDP). Agricultural products include sunflower seed, corn, wheat, dairy products, sugar beets, cattle, pigs and poultry.

Hungary conducts most of its trade with fellow European countries like Germany, France and Italy. Germany remains the dominant trading partner with 28.1% of Hungarian products being exported into the country. Other notable countries include United Kingdom (4.3%) and Slovakia (4.6%).

 


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