HungaryEconomy—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%) FSU 8.6% (1996) Imports: total value: $18.6 billion (f.o.b. 1996) commodities: machinery and equipment 36.5% other manufactures 43.7% fuels and electricity 11.8% agricultural and food products 4.4% raw materials 3.6% (1996) partners: EU 59.8% (Germany 23.6% Austria 9.5% Italy 8.1%) FSU 14.9% (1996) Debt—external: $27.6 billion (1996 est.) Economic aid: $NA Currency: 1 forint (Ft) = 100 filler Exchange rates: forints per US$1—206.260 (January 1998) 186.789 (1997) 152.647 (1996) 125.681 (1995) 105.160 (1994) 91.933 (1993) Fiscal year: calendar year
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