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@Hungary:Economy

Economy-overview: Hungary has consolidated its March 1995
stabilization program and undergone enough restructuring to become an
established market economy. The country appears to have entered a
period of sustainable growth, gradually falling inflation, and stable
external balances. The government's main economic priorities are to
complete structural reforms, particularly the implementation of the
1997 pension reform act (the first in the region), taxation reform,
and planning for comprehensive health care, local government finance
reform, and the reform of education at all levels. Foreign investment
has totaled more than $17 billion through 1997. In recognition of
Hungary's improved macro-economic situation, all major credit-rating
agencies listed the country's foreign currency debt issuances as
investment grade in 1996. The current IMF stand-by arrangement expired
in February 1998, and Budapest and the IMF agree that there is no need
to renew it. The OECD welcomed Hungary as a member in May 1996, and in
December 1997 the EU invited Hungary to begin the accession process.
Forecasters expect 4%-5% growth in 1998.

GDP: purchasing power parity-$73.2 billion (1997 est.)

GDP-real growth rate: 4.4% (1997 est.)

GDP-per capita: purchasing power parity-$7,400 (1997 est.)

GDP-composition by sector:
agriculture: 7.2%
industry: 31.8%
services: 61% (1995)

Inflation rate-consumer price index: 18% (1997 est.)

Labor force:
total: 4.5 million (1996)
by occupation: services 65.0%, industry 26.7%, agriculture 8.3 (1996)

Unemployment rate: 9% (1997 est.)

Budget:
revenues: $12.1 billion
expenditures: $13.8 billion, including capital expenditures of $NA
(1997 est.)

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

Industrial production growth rate: 7% (1997 est.)

Electricity-capacity: 6.979 million kW (1995)

Electricity-production: 32.92 billion kWh (1995)

Electricity-consumption per capita: 3,423 kWh (1995)

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

Exports:
total value: $16 billion (f.o.b., 1996)
commodities: machinery and equipment 36.6%, other manufactures 40.6%,
agriculture and food products 15.1%, raw materials 4.4%, fuels and
electricity 3.3% (1996)
partners: EU 62.8% (Germany 29%, Austria 10.6%, Italy 8.0%),