rivate firms. The slow pace of privatization picked
up somewhat in 1995, as 512 smaller state enterprises were
transferred to private National Investment Funds under the Mass
Privatization Program, but large-scale industry remains largely in
state hands. Industrial production increased 10.2% in 1995,
following a 13.2% rise in 1994, yet remains about 13% below the 1989
level. Inflation, which had approached 1,200% annually in early
1990, fell to 21.6% in December 1995, as the government held the
1995 budget deficit to less than 3% of GDP. After peaking at 16.9%
in July 1994, unemployment gradually fell to 14.9% in December 1995
- although the rate still approaches 30% in some regions. The trade
and current account balances officially are in deficit but in fact
both have comfortable surpluses because of large, unrecorded sales
to cross-border visitors. Prospects for 1996 are good, with the
government promising to push privatization and social welfare
reform. Economic growth should remain above 5%, with inflation
dropping below 20% by yearend 1996 and unemployment continuing its
slow decline. As for external debt, the burden was sharply reduced
by reschedulings and write-offs of both private and official debt
during 1991-94.

GDP: purchasing power parity - $226.7 billion (1995 est.)

GDP real growth rate: 6.5% (1995 est.)

GDP per capita: $5,800 (1995 est.)

GDP composition by sector:
agriculture: 7%
industry: 38%
services: 55% (1993)

Inflation rate (consumer prices): 21.6% (December 1995)

Labor force: 17.743 million (1994 annual average)
by occupation: industry and construction 32.0%, agriculture 27.6%,
trade, transport, and communications 14.7%, government and other
25.7% (1992)

Unemployment rate: 14.9% (December 1995)

Budget:
revenues: $34.5 billion
expenditures: $37.8 billion, including capital expenditures of $NA
(1995 est.)

Industries: machine building, iron and steel, coal mining,
chemicals, shipbuilding, food processing, glass, beverages, textiles

Industrial production growth rate: 10.2% (1995)

Electricity:
capacity: 31,120,000 kW
production: 133.7 billion kWh
consumption per capita: 3,000 kWh (1993)

Agriculture: potatoes, milk, fruits, vegetables, wheat; poultry
and eggs; pork, beef

Illicit drugs: illicit producer of opium for domestic consumption
and amphetamines for the international market; transshipment point