About Hungary and Key Financial Statistics










About Hungary and Key Financial Statistics



Overview of Economy:

Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-28 average. In late 2008, Hungary's impending inability to service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an IMF/EU/World Bank-arranged financial assistance package worth over $25 billion. The global economic downturn, declining exports, and low domestic consumption and investment, dampened by government austerity measures, resulted in a severe economic contraction in 2009. In 2010 the new government implemented a number of changes including cutting business and personal income taxes, but imposed "crisis taxes" on financial institutions, energy and telecom companies, and retailers. The IMF/EU bail-out program lapsed at the end of 2010 and was replaced by Post Program Monitoring and Article IV Consultations on overall economic and fiscal processes. At the end of 2011 the government turned to the IMF and the EU to obtain financial backstop to support its efforts to refinance foreign currency debt and bond obligations in 2012 and beyond, but Budapest's rejection of EU and IMF economic policy recommendations led to a breakdown in talks with the lenders in late 2012. Global demand for high yield has since helped Hungary to obtain funds on international markets. Hungary’s progress reducing its deficit to under 3% of GDP led the European Commission in 2013 to permit Hungary for the first time since joining the EU in 2004 to exit the Excessive Deficit Procedure.



Gross Domestic Product (In USD):

$247.1 billion (2014 est.)
$238.6 billion (2013 est.)
$235 billion (2012 est.)



Composition of Gross Domestic Product:


% Agricuture: 4.4

% Industry: 30.7

% Services: 64.9


Composition of Labor Force by Occupation:

% Agriculture: 7.1

% Industry: 29.7

% Services: 63.2


Per Capita Income:

$25,000 (2014 est.)
$24,200 (2013 est.)
$23,800 (2012 est.)



Exports:

$100 billion (2014 est.)
$96.08 billion (2013 est.)



Key Export Commodities:

machinery and equipment 53.5%, other manufactures 31.2%, food products 8.7%, raw materials 3.4%, fuels and electricity 3.9% (2012 est.)



Export Partners:

Germany 28.8%, Austria 5.8%, Romania 5.7%, Slovakia 5.1%, Italy 4.8%, France 4.7%, Poland 4%, Czech Republic 4% (2014)



Imports:

$96.42 billion (2014 est.)
$91.41 billion (2013 est.)



Key Import Commodities:

machinery and equipment 45.4%, other manufactures 34.3%, fuels and electricity 12.6%, food products 5.3%, raw materials 2.5% (2012)



Import Partners:

Germany 25.6%, Austria 7.4%, Russia 7%, China 6.2%, Slovakia 5.5%, Poland 5.3%, France 4.8%, Czech Republic 4.6%, Italy 4.5%, Netherlands 4.1% (2014)



Inflation Rate (Consumer Price Index):

-0.2% (2014 est.)
1.7% (2013 est.)




Exchange Rate to USD:

forints (HUF) per US dollar -
232.6 (2014 est.)
232.6 (2013 est.)
225.1 (2012 est.)
201.05 (2011 est.)
207.94 (2010 est.)




Unemployment Rate:
7.7% (2014 est.)
10.2% (2013 est.)



S&P Rating:



Standard & Poor's Ratings:

  • AAA: The best quality borrowers, reliable and stable
  • AA: Quality borrowers, a bit higher risk than AAA
  • A: Economic situation can affect finance
  • BBB: Medium class borrowers, which are satisfactory at the moment
  • BB: More prone to changes in the economy
  • B: Financial situation varies noticeably
  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.






Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings