hungary economic overview hristo georgiev dilyan dimitrov
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Hungary
Economic Overview
Hristo Georgiev
Dilyan Dimitrov
Hungary – Basic Data
Size area: 93,030 km2;Population: 10.038m (Mar 2008 est.);Population growth: -0.2% (average, 2004-2007); Government type: Parliamentary democracy; Currency: Hungarian forint (HUF)
Recent Economic History
Transition to democracy and open market economy After fall of the communist regime structural reforms
and stabilization measures in the 1990’s Deterioration of the macroeconomic performance and
new reforms in the banking and public sectors in the mid-1990’s
Strong economic performance after the reforms Since 2001 shift from structural reforms to rebalancing
the living standards and upgrading of the public infrastructure
GDP GDP – $ 138 billion (2007) Composition by sectorsagriculture: 3.3% industry: 32.4% services: 64.2% (2007 est.).
GDP per capita - $ 13,745
GDP Growth Rate
Labor Market
Population - approx. 10 million Employed – 3,9 million Employment rate – 57% Employment by sectors:agriculture: 6.2% industry: 27.1% services: 66.7%
Gross monthly average salary:185,000 HUF (approx. 740 EUR)
Unemployment – 9.1% (Feb. 2009)
Unemployment Rate
International Trade
Exports: $109.3 billion f.o.b. (2008 est.)
machinery and equipment 61.1%other manufactures 28.7%food products 6.5%
raw materials 2%fuels and electricity 1.6% (2003)
Export Partners: Germany 28.1%, Italy 5.6%, France 4.7%, Austria 4.6%, Romania 4.5%, UK 4.5%, Slovakia 4.2%, Poland 4.2% (2007)
International Trade
Imports:$107.5 billion f.o.b. (2008 est.)
machinery and equipment 51.6% other manufactures 35.7% fuels and electricity 7.7% food products 3.1% raw materials 2.0% (2003)
Import partners:Germany 26.6%, China 7.8%, Russia 6.9%, Austria 6.1%, Italy 4.5%, France 4.3%, Netherlands 4.3% (2007)
Current Account Balance
Current Account Balance
Inflation
Effects of Crisis on Hungary
Decline in economic growth Tightened credit conditions and fiscal policy
Effects of Crisis on Hungary
Key indicators 2008 2009 2010 2011 2012 2013
Real GDP growth (%) 0.5 -4.5 0.4 2.7 3.6 3.5
Consumer price inflation (av; %) 6.1 3.0 2.7 2.5 2.3 2.1
Consumer price inflation (year-end; %) 3.7 3.0 2.6 2.4 2.2 2.0
Budget balance (% of GDP) -3.4 -2.9 -2.8 -2.5 -2.5 -2.2
Current-account balance (% of GDP) -5.8 -3.5 -3.8 -4.2 -3.9 -3.6
Short-term deposit rate (av; %) 8.1 8.0 7.3 6.8 6.3 5.8
Exchange rate Ft:US$ (av) 172.1 209.7 200.7 191.5 182.4 176.2
Exchange rate Ft:€(av) 251.5 280.0 278.0 271.0 264.0 259.0
Monetary and Fiscal Policy
IMF package of $25bn given in portions Planned tightening of fiscal policy IMF is concerned that Hungary is not committed
enough to reform
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