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Guide to Hungary

Introduction

Background: Hungary was part of the polyglot Austro-Hungarian Empire, which collapsed during World War I. The country fell under Communist rule following World War II. In 1956, a revolt and announced withdrawal from the Warsaw Pact were met with a massive military intervention by Moscow. Under the leadership of Janos KADAR in 1968, Hungary began liberalizing its economy, introducing so-called "Goulash Communism." Hungary held its first multiparty elections in 1990 and initiated a free market economy. It joined NATO in 1999 and the EU in 2004.

Geography

Location: Central Europe, northwest of Romania
Geographic coordinates: 47 00 N, 20 00 E
Map references: Europe
Area: total
Area - comparative: slightly smaller than Indiana
Land boundaries: total
Coastline: 0 km (landlocked)
Maritime claims: none (landlocked)
Climate: temperate; cold, cloudy, humid winters; warm summers
Terrain: mostly flat to rolling plains; hills and low mountains on the Slovakian border
Elevation extremes: lowest point
Natural resources: bauxite, coal, natural gas, fertile soils, arable land
Land use: arable land
Irrigated land: 2,100 sq km (1998 est.)
Environment - current issues: the upgrading of Hungary's standards in waste management, energy efficiency, and air, soil, and water pollution to meet EU requirements will require large investments
Environment - international agreements: party to
Geography - note: landlocked; strategic location astride main land routes between Western Europe and Balkan Peninsula as well as between Ukraine and Mediterranean basin; the north-south flowing Duna (Danube) and Tisza Rivers divide the country into three large regions

People

Population: 10,006,835 (July 2005 est.)
Age structure: 0-14 years
Median age: total
Population growth rate: -0.26% (2005 est.)
Birth rate: 9.76 births/1,000 population (2005 est.)
Death rate: 13.19 deaths/1,000 population (2005 est.)
Net migration rate: 0.86 migrant(s)/1,000 population (2005 est.)
Sex ratio: at birth
Infant mortality rate: total
Life expectancy at birth: total population
Total fertility rate: 1.32 children born/woman (2005 est.)
HIV/AIDS - adult prevalence rate: 0.1% (2001 est.)
HIV/AIDS - people living with HIV/AIDS: 2,800 (2001 est.)
HIV/AIDS - deaths: less than 100 (2001 est.)
Nationality: noun
Ethnic groups: Hungarian 92.3%, Roma 1.9%, other or unknown 5.8% (2001 census)
Religions: Roman Catholic 51.9%, Calvinist 15.9%, Lutheran 3%, Greek Catholic 2.6%, other Christian 1%, other or unspecified 11.1%, unaffiliated 14.5% (2001 census)
Languages: Hungarian 93.6%, other or unspecified 6.4% (2001 census)
Literacy: definition

Government

Country name: conventional long form
Government type: parliamentary democracy
Capital: Budapest
Administrative divisions: 19 counties (megyek, singular - megye), 20 urban counties (singular - megyei varos), and 1 capital city (fovaros)
Independence: 1001 (unification by King Stephen I)
National holiday: Saint Stephen's Day, 20 August
Constitution: 18 August 1949, effective 20 August 1949; revised 19 April 1972; 18 October 1989 revision ensured legal rights for individuals and constitutional checks on the authority of the prime minister and also established the principle of parliamentary oversight; 1997 amendment streamlined the judicial system
Legal system: rule of law based on Western model
Suffrage: 18 years of age; universal
Executive branch: chief of state
Legislative branch: unicameral National Assembly or Orszaggyules (386 seats; members are elected by popular vote under a system of proportional and direct representation to serve four-year terms) elections
Judicial branch: Constitutional Court (judges are elected by the National Assembly for nine-year terms)
Political parties and leaders: Alliance of Free Democrats or SzDSz [Gabor KUNCZE]; Hungarian Civic Alliance or Fidesz [Viktor ORBAN, chairman]; Hungarian Democratic Forum or MDF [Ibolya DAVID]; Hungarian Democratic People's Party or MDNP [Erzsebet PUSZTAI, chairman]; Hungarian Socialist Party or MSzP [Istvan HILLER, chairman]; Hungarian Workers' Party or MMP [Gyula THURMER, chairman]
Political pressure groups and leaders: NA
International organization participation: Australia Group, BIS, CE, CEI, CERN, EAPC, EBRD, EIB, ESA (cooperating state), EU (new member), FAO, G- 9, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, ISO, ITU, MIGA, MINURSO, NAM (guest), NATO, NEA, NSG, OAS (observer), OECD, OPCW, OSCE, PCA, UN, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, UNMIK, UNOMIG, UPU, WCL, WCO, WEU (member affiliate), WFTU, WHO, WIPO, WMO, WToO, WTO, ZC
Diplomatic representation in the US: chief of mission
Diplomatic representation from the US: chief of mission
Flag description: three equal horizontal bands of red (top), white, and green

Economy

Economy - overview: Hungary has made the transition from a centrally planned to a market economy, with a per capita income one-half that of the Big Four European nations. Hungary continues to demonstrate strong economic growth and acceded to the European Union in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $23 billion since 1989. Hungarian sovereign debt was upgraded in 2000 and together with the Czech Republic holds the highest rating among the Central European transition economies; however, ratings agencies have expressed concerns over Hungary's unsustainable budget and current account deficits. Inflation has declined from 14% in 1998 to 7% in 2004. Unemployment has persisted around the 6% level, but Hungary's labor force participation rate of 57% is one of the lowest in the OECD. Germany is by far Hungary's largest economic partner. Policy challenges include cutting the public sector deficit to 3% of GDP by 2008, from about 5% in 2004, and orchestrating an orderly interest rate reduction without sparking capital outflows.
GDP (purchasing power parity): $149.3 billion (2004 est.)
GDP - real growth rate: 3.9% (2004 est.)
GDP - per capita: purchasing power parity - $14,900 (2004 est.)
GDP - composition by sector: agriculture
Labor force: 4.17 million (2004 est.)
Labor force - by occupation: agriculture 6.2%, industry 27.1%, services 66.7% (2002)
Unemployment rate: 5.9% (2004 est.)
Population below poverty line: 8.6% (1993 est.)
Household income or consumption by percentage share: lowest 10%
Distribution of family income - Gini index: 24.4 (1998)
Inflation rate (consumer prices): 7% (2004 est.)
Investment (gross fixed): 22.8% of GDP (2004 est.)
Budget: revenues
Public debt: 58.3% of GDP (2004 est.)
Agriculture - products: wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products
Industries: mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles
Industrial production growth rate: 9.6% (2004 est.)
Electricity - production: 34.07 billion kWh (2002)
Electricity - production by source: fossil fuel
Electricity - consumption: 35.99 billion kWh (2002)
Electricity - exports: 8.3 billion kWh (2002)
Electricity - imports: 12.6 billion kWh (2002)
Oil - production: 41,190 bbl/day (2001 est.)
Oil - consumption: 140,700 bbl/day (2001 est.)
Oil - exports: 47,180 bbl/day (2001)
Oil - imports: 136,600 bbl/day (2001)
Oil - proved reserves: 110.7 million bbl (1 January 2002)
Natural gas - production: 3.231 billion cu m (2001 est.)
Natural gas - consumption: 13.37 billion cu m (2001 est.)
Natural gas - exports: 4 million cu m (2001 est.)
Natural gas - imports: 9.587 billion cu m (2001 est.)
Natural gas - proved reserves: 50.45 billion cu m (1 January 2002)
Current account balance: $-7.941 billion (2004 est.)
Exports: $54.62 billion f.o.b. (2004 est.)
Exports - commodities: machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6% (2003)
Exports - partners: Germany 31.4%, Austria 6.8%, France 5.7%, Italy 5.6%, UK 5.1% (2004)
Imports: $58.68 billion f.o.b. (2004 est.)
Imports - commodities: machinery and equipment 51.6%, other manufactures 35.7%, fuels and electricity 7.7%, food products 3.1%, raw materials 2.0% (2003)
Imports - partners: Germany 29.2%, Austria 8.3%, Russia 5.7%, Italy 5.5%, Netherlands 4.9%, China 4.8%, France 4.7% (2004)
Reserves of foreign exchange and gold: $14.8 billion (2004 est.)
Debt - external: $57 billion (2004 est.)
Economic aid - recipient: $4.2 billion in available EU structural adjustment and cohesion funds (2004-06)
Currency (code): forint (HUF)
Currency code: HUF
Exchange rates: forints per US dollar - 202.75 (2004), 224.31 (2003), 257.89 (2002), 286.49 (2001), 282.18 (2000)
Fiscal year: calendar year

Communications

Telephones - main lines in use: 3,666,400 (2002)
Telephones - mobile cellular: 6,862,800 (2002)
Telephone system: general assessment
Radio broadcast stations: AM 17, FM 57, shortwave 3 (1998)
Radios: 7.01 million (1997)
Television broadcast stations: 35 (plus 161 low-power repeaters) (1995)
Televisions: 4.42 million (1997)
Internet country code: .hu
Internet hosts: 383,071 (2004)
Internet Service Providers (ISPs): 16 (2000)
Internet users: 1.6 million (2002)

Transportation

Railways: total
Highways: total
Waterways: 1,622 km (most on Danube River) (2004)
Pipelines: gas 4,397 km; oil 990 km; refined products 335 km (2004)
Ports and harbors: Budapest, Dunaujvaros, Gyor-Gonyu, Csepel, Baja, Mohacs (2003)
Airports: 44 (2004 est.)
Airports - with paved runways: total
Airports - with unpaved runways: total
Heliports: 5 (2004 est.)

Military

Military branches: Ground Forces, Air Forces
Military service age and obligation: 18 years of age for voluntary military service; conscription abolished in June 2004 (June 2004)
Manpower available for military service: males age 18-49
Manpower fit for military service: males age 18-49
Manpower reaching military service age annually: males
Military expenditures - dollar figure: $1.08 billion (2002 est.)
Military expenditures - percent of GDP: 1.75% (2002 est.)

Transnational Issues

Disputes - international: in 2004, Hungary amended the status law extending special social and cultural benefits and voted down a referendum to extend dual citizenship to ethnic Hungarians living in neighboring states, which have objected to such measures; consultations continue between Slovakia and Hungary over Hungary's completion of its portion the Gabcikovo-Nagymaros hydroelectric dam project along the Danube; as a member state that forms part of the EU's external border, Hungary must implement the strict Schengen border rules
Illicit drugs: transshipment point for Southwest Asian heroin and cannabis and for South American cocaine destined for Western Europe; limited producer of precursor chemicals, particularly for amphetamine and methamphetamine; improving, but remains vulnerable to money laundering related to organized crime and drug trafficking
Last updated: 20 October, 2005

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