Member of: CCC, CEMA, FAO, GATT, IAEA, IBRD, IBEC, ICAC, ICAO,
ILO, ILZSG, IMF, IMO, IPU, ISO, ITC, ITU, UN, UNESCO, UPU, Warsaw Pact,
WFTU, WHO, WIPO, WMO
Diplomatic representation: Ambassador Dr. Peter VARKONYI; Chancery at 3910 Shoemaker Street NW, Washington DC 20008; telephone (202) 362-6730; there is a Hungarian Consulate General in New York; US—Ambassador-designate Charles THOMAS; Embassy at V. Szabadsag Ter 12, Budapest (mailing address is APO New York 09213); telephone [36] (1) 126-450
Flag: three equal horizontal bands of red (top), white, and green
- Economy Overview: Hungary's postwar Communist government spurred the movement from a predominantly agricultural to an industrialized economy. The share of the labor force in agriculture dropped from over 50% in 1950 to under 20% in 1989. Agriculture nevertheless remains an important sector, providing sizable export earnings and meeting domestic food needs. Industry accounts for about 40% of GNP and 30% of employment. Nearly three-fourths of foreign trade is with the USSR and Eastern Europe. Low rates of growth reflect the inability of the Soviet-style economy to modernize capital plant and motivate workers. GNP grew about 1% in 1988 and declined by 1% in 1989. Since 1985 external debt has more than doubled, to nearly $20 billion. In recent years Hungary has moved further than any other East European country in experimenting with decentralized and market-oriented enterprises. These experiments have failed to jump-start the economy because of: limitations on funds for privatization; continued subsidization of insolvent state enterprises; and the leadership's reluctance to implement sweeping market reforms that would cause additional social dislocations in the short term.
GNP: $64.6 billion, per capita $6,108; real growth rate - 1.3% (1989 est.)
Inflation rate (consumer prices): 18% (1989 est.)
Unemployment rate: 0.4% (1989)
Budget: revenues $14.0 billion; expenditures $14.2 billion, including capital expenditures of $944 million (1988)
Exports: $19.1 billion (f.o.b. 1988); commodities—capital goods 36%, foods 24%, consumer goods 18%, fuels and minerals 11%, other 11%; partners USSR 48%, Eastern Europe 25%, developed countries 16%, less developed countries 8% (1987)
Imports: $18.3 billion (c.i.f., 1988); commodities—machinery and transport 28%, fuels 20%, chemical products 14%, manufactured consumer goods 16%, agriculture 6%, other 16%; partners—USSR 43%, Eastern Europe 28%, less developed countries 23%, US 3% (1987)