progress was made
against inflation, which remained stuck at about 20%, and the
already-large current account deficit in the balance of payments
actually got worse, reaching almost $4 billion. Underlying Hungary's
other economic problems is the large budget deficit, which probably
exceeded 7% of GDP in 1994, despite some late-year budget cutting by
the new leftist government. In 1995 the government has pledged to
accelerate privatization and lower the budget deficit to 5.5% of GDP.
It believes this fiscal tightening will reduce the current account
deficit to $2.5 billion but at the cost of holding economic growth to
only 1%.

National product: GDP - purchasing power parity - $58.8 billion (1994
est.)

National product real growth rate: 3% (1994 est.)

National product per capita: $5,700 (1994 est.)

Inflation rate (consumer prices): 21% (1994)

Unemployment rate: 10.4% (yearend 1994)

Budget:
revenues: $11.3 billion
expenditures: $14.2 billion, including capital expenditures of $NA
(1994)

Exports: $10.3 billion (f.o.b., 1994 est.)
commodities: raw materials and semi-finished goods 30.0%, machinery
and transport equipment 20.1%, consumer goods 25.2%, food and
agriculture 21.4%, fuels and energy 3.4% (1993)
partners: Germany 25.3%, Italy 8.3%, Austria 10.5%, the FSU 14.0%, US
4.3% (1993)

Imports: $14.2 billion (f.o.b., 1994 est.)
commodities: fuels and energy 12.6%, raw materials and semi-finished
goods 27.3%, machinery and transport equipment 33.0%, consumer goods
21.2%, food and agriculture 5.9% (1993)
partners: Germany 21.5%, Italy 6.1%, Austria 11.8%, the FSU 20.9%, US
4.3% (1993); note - about one-fourth of the imports from the FSU were
MiGs delivered as a debt payment

External debt: $27 billion (September 1994)

Industrial production: growth rate 7% (1994 est.)

Electricity:
capacity: 6,740,000 kW
production: 31 billion kWh
consumption per capita: 3,012 kWh (1993)

Industries: mining, metallurgy, construction materials, processed
foods, textiles, chemicals (especially pharmaceuticals), buses,
automobiles

Agriculture: including forestry, accounts for 15% of GDP and 16% of
employment; highly diversified crop and livestock farming; principal
crops - wheat, corn, sunflowers, potatoes, sugar beets; livestock -
hogs, cattle, poultry, dairy products; self-sufficient in food output

Illicit drugs: transshipment point for Southeast Asia heroin and Sou