Hungarian engineering. The economy of Hungary: a brief description, history of development, statistical data
Manufacturing industries are the most developed in industry (90.6% of GDP) The leading branch of the manufacturing industry is mechanical engineering, including:
· automotive industry (plant "Ikarus" in Budapest and Szekesfehervar - Europe's largest manufacturer of buses);
· production of locomotives, vessels, cranes;
· electrical and radio-electronic industry (including the production of communications, computers, medical equipment and devices (Budapest, Szekesfehervar));
machine tool industry (Budapest, Miskolc, Esztergom);
· production of agricultural machinery and equipment for light and food industries.
Figure 4. Structure of the industrial complex in 2007
Electrical products, electronics, engines, diesel locomotives, motorcycles, buses, river boats, industrial equipment, televisions and radios, household appliances, etc. are produced. There are ferrous and non-ferrous metallurgy enterprises.
In the chemical industry, an important place is occupied by the production of mineral fertilizers, plant protection products, organic synthesis products, the rubber industry, various types of plastics, and synthetic materials are developing. Relatively high level reached pharmaceutical production (15% of the cost industrial products). With a long tradition, this industry relies on a strong research and development base, with the help of which more and more effective means fight against various diseases.
The food industry is significant: large meat and dairy and canning enterprises. Of the branches of light industry, the most developed are sewing, leather and footwear, and knitwear. Hungarian fabrics, ready-to-wear, shoes, furniture, as well as products of the meat processing and canning industries are well-deservedly known in many countries of the world.
The food industry relies almost entirely on the domestic raw material base, while some sectors of the light industry require significant imports of raw materials and semi-finished products. Hungary imports cotton, wool, flax, raw leather, timber, and cellulose.
After a recession in the late 1990s production is stabilizing in metallurgy and light industry, which works almost exclusively on tolling raw materials. The share of energy and water supply is 8.9%. In the extractive industries, production is gradually curtailed.
Hungary's exports account for more than half (52%) of all industrial production. Large enterprises export - depending on the industry - 60-80% of their products. The needs of the domestic market are satisfied mainly by small and medium-sized enterprises (the number of employees, respectively, is up to 50 and up to 300 people).
The energy needs of the country are less than 50% provided by their own resources. Oil and natural gas imported from Russia in transit through Ukraine. The Adriatica oil pipeline is operating from the port of Rijeka in Croatia. Natural gas also comes to the country from Romanian Transylvania.
Automotive industry. The automotive industry is one of the main sectors of the Hungarian economy and accounts for 20% of total exports and 46.6% of the country's GDP. In 2007, the value of cars sold abroad reached 8.2 billion euros and engines 5.3 billion euros. 600 enterprises are active in this area, employing 110,000 people. Of these, 240 companies operate in accordance with ISO and/or TS 16949 quality standards. The export share of Hungarian-made machines is 94%, and in the field of automotive components and engines, this number reaches 88%.
The number of manufacturers of the first and second levels is constantly growing. In the early 1990s, some foreign automakers such as Suzuki, Audi and General Motors, as well as 14 of the top 20 Tier 1 manufacturers set up production in Hungary. Many multinational companies have relocated production, service, and their European headquarters and R&D centers to Hungary, and today their direct investments amount to approximately 67 billion euros.
Electrical equipment. Hungary, which produces electronic equipment worth $10 billion a year, currently accounts for 40% of the total production of Eastern European countries. Electronics is one of the leading sectors of the country's economy: 17% of industrial workers and employees work in electronics companies, whose share in industrial production is 25.5%, and in total exports - 42%. Over the past 7 years, foreign investors have shown particular interest in four areas of activity, namely: information technology, communications, consumer electronics and automotive electronics. Computing is the leading electronics sector, accounting for 30% of total production. Hungary is the largest manufacturer of peripheral equipment.
In the field of telecommunications, foreign manufacturers of mobile phones and their components have established Centers of Excellence, which promote innovation and new applications.
A number of companies supplying automotive electronics make it a priority to serve the active car and bus manufacturers on the Hungarian market. Some of the largest global EMS providers such as GE, Philips, Siemens, IBM, HP, Ericsson, Nokia, Sony, Samsung are also present in Hungary. Among the largest manufacturers in this sector are IBM (USA), Flextronics, Samsung, Albacomp, GE (USA), Nokia (Finland), Siemens (Germany), Solectron, Sanmina, Elcoteq, Videoton, Orion, Sanyo and others. In 2006, the inflow of direct foreign investment in the telecommunications sector reached 2.8 billion euros. Today, the share of foreign companies reaches 95% in the production of communication equipment and 30% in the total production of equipment.
The Hungarian telecommunications market over the past 5 years has also demonstrated high growth dynamics. Between 2003 and 2006, the average annual growth rate reached 10%, slightly outperforming the Central and Eastern European countries (9.6%) and well ahead of the average growth rate in the European Union (2.75%). Today, the Hungarian telecommunications market represents 18.7% of the total telecommunications market in Eastern and Central Europe.
The software market is the most dynamically developing segment information technologies, in 2007-2008 its growth rate can reach 9%. Hungary has made significant progress in information technology security, virus protection and image analysis software development, as well as in bioinformatics. There is an ever-increasing demand for security software, application systems for collecting, processing and analyzing business information and data processing, as well as for integrated enterprise management systems (ERP) for small and medium-sized enterprises.
The market for attracting third-party resources showed high growth rates last year, reaching 11%. There is a demand in the Hungarian market for desktop PCs and hosting and operating system services. The largest companies in the telecommunications market are: IBM, HP, Nokia, Ericsson, ORACLE, SAP, CISCO, Siemens, Satyam, TATA Consultancy, Synergon, T-Systems, EDS, FreeSoft, Getronics, Dataplex, BT, Sun Microsystems and Microsoft .
Biotechnology and pharmaceuticals. Biotechnology, including related research, in particular in the field of plant and animal breeding, is a relatively new industry in Hungary, but the production of complex chemicals and pharmaceuticals are traditional, internationally recognized fields of activity.
The Hungarian pharmaceutical industry is based on deep knowledge accumulated in the fields of chemistry and biology. Hungary is one of the largest and most developed pharmaceutical markets in Eastern Europe with pharmaceuticals and medical products sales of 3.6 billion euros in 2007 and global exports exceeding 1.3 billion euros per year.
The country pays special attention to the development of biotechnologies. This applies not only to genetically modified organisms, but also on a wider scale - to the production and use of enzymes and the synthesis of hormones. The main areas of development and application of biotechnology in Hungary are the protection of soil and water from pollution, the production and processing of biomass, the recycling of materials, genetic engineering, nanotechnology, molecular chemistry, agriculture, and food production and processing technology.
Great progress has been made in the application of biotechnology to manufacturing process, especially in medical and paramedical products, including enzymes and intermediates. In this area, the most important is the production of factor vaccines. The production of antibiotics is also a traditional and highly developed area in Hungary. Currently, special attention is paid to new resistant microorganisms, as well as antibiotics based on betagalactosidase derivatives.
The Hungarian government actively supports the development of biotechnologies, thanks to which significant progress is being made in this area. This is evidenced by the fact that Hungary has the most developed biotechnology sector among the 12 new member states of the European Union. So far, fifty biotechnology companies have been opened in the country, and about 170 firms are involved in one or another activity related to biotechnology. Hungary has set itself the goal of becoming one of the top ten biotech countries in the European Union.
So the overall level economic development Hungary is about 35 - 40% compared to the US and approximately the same level as European countries such as Portugal, Greece and Ireland. In the system of the international division of labor, Hungary acts as a supplier of engineering products (mainly buses, parts and assemblies for them, portal and floating cranes, communications equipment, medical equipment), the chemical industry (including pharmaceuticals, plant protection products), agricultural and food products.
Britain is a moderately developed industrial and agrarian state that actively participates in international trade. GDP - 62.5 billion dollars, GDP per capita - 6.2 thousand dollars (2002). With a share of national production in world GDP of 0.15%, the share of the country's foreign trade in world trade is 0.47% (2000). The inflation rate has been consistently declining from 28.2% in 1995 to 5.3% in 2002.
GDP structure (2001): agriculture and forestry - 4.3%, industry and construction - 32.0%, trade and personal services - 12.8%, transport and communications - 9.1%, financial activities - 21, 7%. The most noticeable changes in the structure of GDP in V. in the 1990s. there was a reduction in the share of the agricultural sector and an increase in the share of services.
The share of the private sector in GDP is more than 80% (in 1990 - 10%). Privatization peaked in 1995, and by 1999 this process was largely completed. In 2002 state property there were 190 enterprises (mostly unprofitable). By 2006, the government of P. Medjesha intends to leave about 40 enterprises in the state's ownership (mainly forestries and transport companies "Volan").
The share of foreigners in the ownership structure of the Hungarian economy has reached 30%. Of the 200 largest Hungarian enterprises, about 160 are partially or wholly foreign-owned, and every tenth enterprise in Hungary has a foreign partner, co-founder or owner. Foreign capital controls 90% of the communications and long-distance communications industry, 70% of the banking and financial sector, and 60% of the country's energy sector. 2/3 of the products of the Hungarian manufacturing industry come from foreign-owned enterprises.
The employment rate is 56.3%, or 3.9 million people. (2002). The average annual number of unemployed is 239 thousand people. Lasted from Ser. 1999 the process of reducing unemployment in con. 2002 changed the trend and amounted to 5.8%.
In industry, the manufacturing industries are the most developed (providing 90.6% of gross industrial output), including automobile, machine tool and instrument making (42.6%), food industry (15.0%), petrochemistry (13.8%). %). After the decline of the con. 1990s production is stabilizing in metallurgy and light industry, which works almost exclusively on raw materials supplied by the customer. The share of energy and water supply is 8.9%. In the extractive industries, production is gradually curtailed.
Large enterprises (more than 300 employees) produce 2/3 of all industrial products, the process of concentration of production continues, especially in mechanical engineering, energy and petrochemistry.
Hungarian industry is quite dependent on the state of the world market: more than half (52%) of all industrial production is exported. Large enterprises export - depending on the industry - 60-80% of their products. The needs of the domestic market are satisfied mainly by small and medium-sized enterprises (the number of employees, respectively, is up to 50 and up to 300 people).
Agriculture is experiencing problems with the beginning of the processes of socio-political transformation. The main reasons include the hasty liquidation of agricultural cooperatives, lapses in the implementation of land policy, insufficient funding for the industry, as well as droughts for a number of years. This led to a reduction specific gravity agricultural products (excluding the food industry) in GDP (in 1993-2002 from 17.7 to 4.3%), the share of agricultural products in exports, the number of employees, the size of agricultural areas, livestock, etc. The government's agrarian policy is aimed at strengthening the role of agriculture in the economy, especially in the sectors traditional for Hungary: the production of corn, wheat, meat, vegetables, fruit, and wine.
Agricultural land is 6.1 million hectares, of which more than 50% is arable land. 1.5 million hectares are occupied by spike crops, 1.0 million hectares by corn.
Crop production is represented mainly by grain farming, as well as vegetable growing and horticulture (including viticulture). Livestock provides more than 60% of domestic agricultural income. The most developed are pig breeding, breeding of cattle for meat and dairy purposes, and poultry farming. The needs of the domestic market are also satisfied by sheep breeding and fish breeding in artificial reservoirs.
V. has a well-developed network of transport communications. The length of public roads is more than 30 thousand km, 90% of them have a hard surface. Railways - 7.9 thousand km. The length of inland waterways is 1.6 thousand km. The main river port is Budapest. Domestic air transportation is not carried out, there is a network of small airfields for receiving small aircraft. Ferihegy International Airport is located near Budapest.
Convenient transport location enhances the transit role of the country. The Druzhba-I (from Ukraine), Druzhba-II (from Slovakia), and Adria (from Croatia) oil pipelines, the Bratstvo (from Ukraine) and Baumgartner-Gyor (from ); the total length of pipelines is 7.2 thousand km. The construction of high-speed highways is being actively carried out within the framework of the so-called. Helsinki transport corridors: in 2002 already 60% of the Hungarian sections of the "corridors" met the established European requirements.
The total freight turnover is 26.9 billion tkm (2002). Structure by types of transport: road - 51%, railway - 30%, pipeline - 15%, water - 3%. Structure by directions of transportation: international - 60%, domestic - 40%. Water and air transport are practically not used in domestic cargo transportation. Passenger traffic on intercity transportation is 785 million people, on intracity transportation - 2.8 billion people. (2002).
The development of telecommunications in Hungary is proceeding dynamically: despite the relatively modest growth of traditional telephony, mobile communications are developing at an accelerated pace. The number of mobile phone subscribers increased from 2.5 million to 5.5 million in 2000-02. The volume of radio broadcasting reached 800 thousand hours, television broadcasts - 1.8 million hours. Hungarian television broadcasts on three state channels. In addition, there are three private channels and many commercial cable networks. Broadcasting is carried out by three state stations and a number of commercial ones. Control over the political content of state electronic media programs is carried out by boards of trustees, to which the government and the opposition delegate their representatives on an equal footing.
After the recession of 1987-97, the retail turnover is constantly expanding (in 2002 - 24.8 million dollars). This is facilitated by the growth of monetary incomes of the population, the emergence of new types of trade (hypermarkets, shopping centers) and improving the quality of service. The structure of trade turnover (2002): 33.4% - food, 28.4% - vehicles, spare parts and fuel for them, 16.4% - furniture and household appliances, 9.5% - cultural and educational goods.
The tourism industry is one of the fastest growing sectors of the Hungarian economy. It employs 300 thousand people. (7% of the economically active population) and creates almost 10% of the country's GDP. Developed tourist infrastructure (hotels, Catering, beach, health, entertainment complexes, swimming pools, hunting lodges, fishing spots, etc.) is aimed at visitors with different incomes. V. annually receives 10-15 million foreign tourists. Foreign exchange earnings from tourism amount to 3.4 billion dollars (2002).
Since 1987, Hungary has had a two-tier banking system: the Hungarian National Bank (VNB) carries out issuance and credit policy, general control over the financial market, and authorized financial institutions lend directly to economic entities.
In 1991-94, the government's program of banking consolidation was implemented, aimed at improving the crisis state of most banks and increasing their assets, loan portfolio. Since 1995, the sale of blocks of shares in consolidated banks to reputable Western financial institutions began. By 1998, the privatization of Hungarian banks was practically over. The level of presence of foreign capital in banking system - 63%.
At the beginning 2000, the Hungarian system of credit institutions consisted of 43 banks (90.3% of all financial and credit transactions), 226 savings cooperatives (5.6%), 9 specialized financial institutions (3.6%) and 4 housing savings banks (0. 5%).
The degree of concentration of banks in Hungary is quite high: the top six banks collectively own almost 60 percent of the assets of the banking system.
The public finance system structurally consists of four subsystems: the central government (central level), local governments (local level), separate public funds, social insurance bodies.
In 1998-2001, the overall level of the central government budget deficit was consistently reduced from 4.8% to 3.3% of GDP. In 2002, a sharp surge followed - up to 9.6% of GDP, caused by a change in government and a massive increase in social benefits. A figure of 4.5% of GDP is planned for 2003 in order to reach the level of the Maastricht criteria for EU membership (3% of GDP) in 2004.
In 2002, the revenue side of the budget amounted to $17.8 billion, of which about 80% came from taxes (taxes, excises, duties). Measures to stimulate entrepreneurship and improve the efficiency of the private sector led to a reduction in the degree of centralization budget revenues: the share of state budget revenues in GDP in 1994-2002 decreased from 52.5 to 27%.
The main place in tax revenues to the budget is occupied by the general turnover tax (analogous to the Russian VAT), whose share is 39%, income tax(24% of revenues), consumption tax and excises (19%), business income tax (referred to as corporate tax) - 10%.
V. uses the treasury system of budget execution, i.e. all funds necessary for state institutions are received and spent from the so-called. single treasury account. The Hungarian State Treasury is responsible for the technical work of financing the central budget.
The institutional divisions of the Hungarian financial system are also State supervision of financial institutions(carries out control over compliance with the legislation by the participants of the stock and currency markets), a set of banking and financial institutions, various organizations providing non-government management services financial markets(stock and commodity exchange, central clearing house, brokerage and dealer firms, etc.), Insurance companies and pension funds.
V.'s public debt in 2002 was 9.2 trillion for. (37.5 billion dollars), or 52.2% of GDP. All functions related to the management of public debt (including the currency and forint components) are performed by a specially created Center for Public Debt Management (PDMS). The CDGD was tasked with a gradual transition from the practice of attracting foreign loans to finance external debt obligations to the issuance of government bonds denominated in national currency- forints. In 2002, the external debt-gross B. of the central government (ie without private sector borrowing) fell from 27.8 to 24.8 billion euros.
V. is distinguished by the comparative smoothness of social contrasts, although property stratification is growing. The minimum wage is $200, the minimum pension is $82 (2002). Scaling up policy wages state employees and the strengthening of the forint in 2001-02 raised the level of the average wage in the country to $500 (the average nominal wage in sectors of the economy ranges from $345 in agriculture to $1,000 in the financial sector).
The growth of real incomes in 2002 was 13.6%. As a result, trade turnover increased (by 11%), investments in various forms of accumulation (bank forint deposits (by 13%), life insurance (by 20%), contributions to non-state pension funds (by 27%), etc. ). Public policy to encourage housing construction contributed to the increase in investment in real estate.
The extensive system of social benefits is being restructured according to the principle of need. The main goals of the reform are to reduce the burden of the state budget and reduce the volume of the shadow economy. However, the initiated transition to insurance financing of health care is accompanied by a reduction in hospital beds and medical staff, a revision of the drug reimbursement system, and an expansion of the range of paid services.
The essence of the ongoing pension reform is the transition to a mixed pension system, which involves the introduction of insurance principles for all elements pension provision and increasing the personal responsibility of the future pensioner for the accumulation of pension contributions.
The emerging pension system of V. combines the principles of the distributive and funded systems and includes three elements: basic pensions paid within the framework of social insurance, based on the principle: one year of work experience - 1% of the pension paid; compulsory pension insurance, involving the deduction of 8% of earnings; voluntary pension insurance in about 250 non-state pension funds.
The economy of V. is different a high degree openness and participation in the international division of labor. Foreign trade has a positive trend, but since 1992 it has been chronically passive. The volume of exports in 2002 - 34.3 billion dollars, imports - 37.6 billion dollars.
The commodity structure of exports in 1998-2002 was dominated by products with a high degree of added value: the groups "machinery and equipment" (57-59%; mainly communications equipment, sound processing equipment, automated data processing systems, household and industrial electrical appliances) and " processed products” (29-31%). Agricultural products accounted for 7-8% of exports.
The main contingent of imports was also "machinery and equipment" (50-52%) and "processed products" (35-38%). The share of energy carriers in imports is 6-8%, and Russian energy carriers account for 70% of all energy supplies to V.
In 2002, more than 90% of Hungarian exports went to European countries (EU, countries of Central and Eastern Europe, the Baltic States, Russia, Ukraine, Belarus). 75% of imports came from there. The most significant foreign trade partners of Hungary are Germany (share in the trade turnover 29.6%), Austria (7.0%), Italy (6.7%) and France (5.2%). The place of the Russian Federation in the top five foreign trade partners of Hungary (share - 3.8%) is determined mainly by the dynamics of energy supplies, which account for 83% of the total volume of Russian supplies to Hungary, as well as by the possibilities of increasing Hungarian exports to the Russian Federation (in 2002 - 1, 3% of the total export volume).
A favorable business climate in the country, a fairly high position in the rating of international agencies attract foreign capital. To con. 2002 was accumulated 24.5 billion dollars of foreign investment (3rd place in Eastern Europe after Poland and the Czech Republic). In the 2nd floor. 1990s the influx of foreign investment amounted to about 2.0 billion dollars annually (the maximum in 1995 was more than 3.5 billion dollars). 70% of investments are associated with the acquisition of privatized enterprises, 30% - the construction of turnkey enterprises. In 2001-02, in connection with the deterioration of the world economic situation, there was an increase in the outflow of capital and the transfer of enterprises located in V. to other countries.
During 1970-2018 Hungarian industry at current prices increased by $30.9 billion (15.5 times) to $33.0 billion; the change was -0.14 billion dollars due to a fall in population by 0.68 million, and also by 31.0 billion dollars due to the growth of industry per capita by 3,200.7 dollars. The average annual growth of the industry in Hungary amounted to 0.64 billion dollars or 5.9%. The average annual growth of the Hungarian industry in constant prices was at the level of 2.3%. The share in the world decreased by 0.031%. The share in Europe increased by 0.36%. The minimum of industry was in 1970 ($2.1 billion). The industry peaked in 2008 ($34.0 billion).
During 1970-2018. industry per capita in Hungary increased by $3,200.7 (16.6 times) to $3,405.5. The average annual growth of industry per capita in current prices is 66.7 dollars or 6.0%.
The change in the Hungarian industry is described by a linear correlation-regression model: y=0.66x-1 295.5 , where y is the calculated value of the Hungarian industry, x is the year. Correlation coefficient = 0.918. Coefficient of determination = 0.843.
Hungarian industry, 1970-2008 (growth)
For 1970-2008 Hungarian industry at current prices increased by $31.9 billion (16.0 times) to $34.0 billion; the change was $0.078 billion due to a $0.38 million drop in population, and $32.0 billion due to a $3,200.9 per capita industry growth. The average annual growth of the Hungarian industry was at the level of 0.84 billion dollars or 7.6%. The average annual growth of Hungarian industry in constant prices was 2.7%. The share in the world increased by 0.024%. The share in Europe increased by 0.33%.
For 1970-2008 industry per capita in Hungary increased by $3,200.9 (16.6 times) to $3,405.7. The average annual growth of industry per capita in current prices was $84.2 or 7.7%.
Hungarian industry, 2008-2018 (drop)
For the period 2008-2018 Hungarian industry at current prices decreased by $1.0 billion (by 3%) to $33.0 billion; the change was -1.0 billion dollars due to a drop in population by 0.30 million, and -0.0019 billion dollars due to a fall in industry per capita by 0.19 dollars. The average annual growth of the industry in Hungary amounted to -0.10 billion dollars or -0.31%. The average annual growth of Hungarian industry in constant prices was 0.71%. The share in the world decreased by 0.054%. The share in Europe increased by 0.027%.
During 2008-2018 per capita industry in Hungary rose $0.19 (0.0056%) to $3,405.5. The average annual growth of industry per capita in current prices is -0.019 dollars or -0.0006%.
Industry of Hungary, 1970
Hungarian industry in 1970 it amounted to 2.1 billion dollars, ranked 40th in the world and was at the level of the industry of the Philippines (2.2 billion dollars), the industry of Colombia (2.2 billion dollars), the industry of North Korea (2.0 billion dollars). The share of Hungarian industry in the world was 0.21%.
In 1970, it was 204.7 dollars, ranked 60th in the world and was at the level of industry per capita in Jamaica (217.8 dollars), industry per capita in Guyana (216.2 dollars), industry per capita in Oman (211.1 dollars), industry per capita in Aruba ($207.4), industry per capita in Hong Kong ($202.2), industry per capita in Angola ($194.8). Industry per capita in Hungary was less than industry per capita in the world ($274.1) by $69.4.
Comparison of industry in Hungary and neighbors in 1970. The industry of Hungary was smaller than the industry of Romania (6.0 billion dollars) by 64.3%, the industry of Austria (5.0 billion dollars) by 57.6%. Industry per capita in Hungary was less than industry per capita in Austria ($666.6) by 69.3%, industry per capita in Romania ($289.7) by 29.3%.
Comparison of Hungary's industry and leaders in 1970. The industry of Hungary was less than the industry of the USA (288.7 billion dollars) by 99.3%, the industry of the USSR (164.8 billion dollars) by 98.7%, the industry of Japan (80.8 billion dollars) by 97.4%, the industry of Germany (77.4 billion . dollars) by 97.3%, UK industry (41.4 billion dollars) by 94.9%. Industry per capita in Hungary was less than industry per capita in the US ($1,377.4) by 85.1%, industry per capita in Germany ($985.6) by 79.2%, industry per capita in Japan ($770.2) by 73.4%, industry per capita in Great Britain ($744.2) by 72.5%, industry per capita in the USSR ($679.8) by 69.9%.
The potential of Hungarian industry in 1970. With industry per capita at the same level as US industry per capita ($1,377.4), Hungary's industry would be $14.3 billion, 6.7 times the actual level. With industry per capita at the same level as industry per capita in Austria ($666.6), the best neighbor, Hungary's industry would be $6.9 billion, which is 3.3 times the actual level. With industry per capita at the same level as industry per capita in Europe ($632.1), Hungary's industry would be $6.6 billion, 3.1 times the actual level. With industry per capita at the same level as industry per capita in Eastern Europe ($587.1), Hungary's industry would be $6.1 billion, 2.9 times the actual level. With industry per capita at the same level as industry per capita in the world ($274.1), Hungary's industry would be $2.8 billion, 33.9% more than the actual level.
Hungarian industry, 2008
Hungarian industry in 2008 it was 34.0 billion dollars, ranked 57th in the world. The share of Hungarian industry in the world was 0.23%.
Industry per capita in Hungary in 2008 was $3,405.7, ranked 49th in the world and was on par with industry per capita in Malaysia ($3,606.3), industry per capita in Portugal ($3,573.1), industry per capita in Greece (3 486.0 dollars), industry per capita in East Timor (3 454.6 dollars), industry per capita in Azerbaijan (3 252.7 dollars), industry per capita in Estonia (3 208.6 dollars). Industry per capita in Hungary was more than industry per capita in the world ($2,150.3) by $1,255.4.
Comparison of industry in Hungary and neighbors in 2008. The industry of Hungary was larger than the industry of Slovakia (24.0 billion dollars) by 41.6%, the industry of Croatia (11.5 billion dollars) 3.0 times, the industry of Serbia (9.2 billion dollars) 3.7 times, but was less than industry of Austria (89.4 billion dollars) by 61.9%, industry of Romania (54.5 billion dollars) by 37.5%, industry of Ukraine (46.5 billion dollars) by 26.9%. Industry per capita in Hungary was larger than industry per capita in Croatia ($2,648.9) by 28.6%, industry per capita in Romania ($2,616.5) by 30.2%, industry per capita in Serbia ($1,256.3). ) by 2.7 times, industry per capita in Ukraine ($1,007.7) by 3.4 times, but was less than industry per capita in Austria ($10,721.1) by 68.2%, industry per capita in Slovakia ($4,449.7 ) by 23.5%.
Comparison of Hungarian industry and leaders in 2008. The Hungarian industry was smaller than the US industry ($2,471.6 billion) by 98.6%, the Chinese industry ($1,895.7 billion) by 98.2%, the Japanese industry ($1,205.7 billion) by 97.2%, the German industry (867.4 billion dollars) by 96.1%, the industry of Italy (434.9 billion dollars) by 92.2%. Industry per capita in Hungary was 2.4 times larger than industry per capita in China ($1,409.9), but was less than industry per capita in Germany ($10,691.3) by 68.1%, industry per capita in Japan (9 379.1 dollars) by 63.7%, industry per capita in the USA (8 147.0 dollars) by 58.2%, industry per capita in Italy (7 308.2 dollars) by 53.4%.
Industry potential in Hungary in 2008. With industry per capita at the same level as industry per capita in Austria ($10,721.1), the best neighbor, Hungary's industry would be $107.1 billion, which is 3.1 times the actual level. With industry per capita at the same level as industry per capita in Germany ($10,691.3), Hungary's industry would be $106.8 billion, 3.1 times the actual level. With industry per capita at the same level as industry per capita in Europe ($5,713.2), Hungary's industry would be $57.1 billion, 67.8% more than the actual level.
Hungarian industry, 2018
Hungarian industry in 2018 was equal to 33.0 billion dollars, ranked 56th in the world. The share of Hungarian industry in the world was 0.18%.
Industry per capita in Hungary in 2018 was $3,405.5, ranked 49th in the world and was at the level of industry per capita in Portugal ($3,639.7), industry per capita in Lithuania ($3,579.7), industry per capita in Turkmenistan (3,413.9 dollars), industry per capita in Poland ($3,364.4), industry per capita in Gabon ($3,348.4), industry per capita in China ($3,259.7). Industry per capita in Hungary was more than industry per capita in the world ($2,420.7) by $984.7.
Comparison of industry in Hungary and neighbors in 2018. The industry of Hungary was larger than the industry of Ukraine (27.4 billion dollars) by 20.3%, the industry of Slovakia (24.4 billion dollars) by 35.2%, the industry of Serbia (10.6 billion dollars) by 3.1 times, the industry of Croatia (9.9 billion . dollars) by 3.3 times, but was less than the industry of Austria (90.1 billion dollars) by 63.4%, the industry of Romania (56.4 billion dollars) by 41.5%. Industry per capita in Hungary was larger than industry per capita in Romania ($2,881.8) by 18.2%, industry per capita in Croatia ($2,370.5) by 43.7%, industry per capita in Serbia ($1,516.9). ) by 2.2 times, industry per capita in Ukraine ($623.3) by 5.5 times, but was less than industry per capita in Austria ($10,291.1) by 66.9%, industry per capita in Slovakia ($4,477.1) by 23.9%.
Comparison of Hungarian industry and leaders in 2018. The industry of Hungary was less than the industry of China (4 612.5 billion dollars) by 99.3%, the industry of the USA (3 050.0 billion dollars) by 98.9%, the industry of Japan (1 133.3 billion dollars) by 97.1%, the industry of Germany (904.1 billion dollars) by 96.4%, the industry of India (542.2 billion dollars) by 93.9%. Hungarian industry per capita was 4.5% larger than China's per capita industry ($3,259.7) by 4.5%, India's per capita industry ($400.5) by 8.5 times, but was less than Germany's per capita industry ($10,986.5) by 69%, industry per capita in the US ($9,333.8) by 63.5%, industry per capita in Japan ($8,910.5) by 61.8%.
Industry potential in Hungary in 2018. With industry per capita at the same level as industry per capita in Germany ($10,986.5), Hungary's industry would be $106.4 billion, 3.2 times the actual level. With industry per capita at the same level as industry per capita in Austria ($10,291.1), the best neighbor, Hungary's industry would be $99.7 billion, which is 3.0 times the actual level. With industry per capita at the same level as industry per capita in Europe ($5,300.5), Hungary's industry would be $51.4 billion, 55.6% more than the actual level.
| year | industry, billion dollars | industry per capita, dollars | industry, billion dollars | industry growth, % | share of industry in the economy, % | share of Hungary, % | ||
|---|---|---|---|---|---|---|---|---|
| current prices | constant prices 1970 | in the world | in Europe | in Eastern Europe | ||||
| 1970 | 2.1 | 204.7 | 2.1 | 36.1 | 0.21 | 0.48 | 1.1 | |
| 1971 | 2.3 | 223.1 | 2.3 | 7.0 | 35.7 | 0.21 | 0.48 | 1.1 |
| 1972 | 2.7 | 262.3 | 2.4 | 6.3 | 36.2 | 0.22 | 0.49 | 1.2 |
| 1973 | 3.5 | 331.5 | 2.6 | 7.7 | 36.4 | 0.22 | 0.50 | 1.3 |
| 1974 | 4.1 | 387.8 | 2.8 | 8.3 | 36.9 | 0.22 | 0.53 | 1.4 |
| 1975 | 4.7 | 449.8 | 3.0 | 7.2 | 37.7 | 0.24 | 0.55 | 1.5 |
| 1976 | 5.3 | 496.8 | 3.2 | 5.8 | 37.4 | 0.25 | 0.60 | 1.7 |
| 1977 | 5.9 | 552.3 | 3.4 | 6.7 | 37.2 | 0.24 | 0.60 | 1.7 |
| 1978 | 6.9 | 642.7 | 3.6 | 5.3 | 37.4 | 0.24 | 0.59 | 1.8 |
| 1979 | 7.9 | 735.8 | 3.8 | 4.7 | 38.1 | 0.24 | 0.58 | 1.9 |
| 1980 | 7.7 | 715.4 | 3.6 | -2.9 | 35.0 | 0.21 | 0.51 | 1.8 |
| 1981 | 8.1 | 749.7 | 3.8 | 4.9 | 35.4 | 0.22 | 0.60 | 1.9 |
| 1982 | 8.2 | 760.6 | 4.0 | 3.3 | 35.3 | 0.22 | 0.61 | 1.8 |
| 1983 | 7.4 | 690.7 | 4.1 | 2.4 | 35.1 | 0.20 | 0.57 | 1.7 |
| 1984 | 7.1 | 667.6 | 4.1 | 1.6 | 34.8 | 0.19 | 0.58 | 1.8 |
| 1985 | 7.3 | 686.4 | 4.0 | -2.8 | 34.6 | 0.19 | 0.58 | 1.9 |
| 1986 | 8.2 | 779.8 | 4.1 | 1.9 | 33.1 | 0.20 | 0.55 | 2.3 |
| 1987 | 8.9 | 852.1 | 4.2 | 3.2 | 33.4 | 0.19 | 0.52 | 2.5 |
| 1988 | 8.9 | 852.0 | 4.2 | -1.2 | 31.5 | 0.17 | 0.48 | 2.7 |
| 1989 | 9.0 | 865.8 | 4.1 | -1.8 | 31.2 | 0.17 | 0.49 | 2.7 |
| 1990 | 9.2 | 883.7 | 3.8 | -6.6 | 28.4 | 0.16 | 0.43 | 2.7 |
| 1991 | 8.6 | 825.9 | 3.2 | -17.4 | 27.6 | 0.14 | 0.39 | 2.6 |
| 1992 | 8.7 | 841.2 | 3.0 | -6.1 | 25.9 | 0.14 | 0.39 | 3.0 |
| 1993 | 8.6 | 830.2 | 3.0 | 2.6 | 24.8 | 0.14 | 0.44 | 3.5 |
| 1994 | 9.0 | 873.4 | 3.2 | 5.7 | 23.9 | 0.14 | 0.45 | 4.0 |
| 1995 | 10.0 | 968.4 | 3.4 | 5.6 | 25.5 | 0.14 | 0.44 | 4.7 |
| 1996 | 10.0 | 970.9 | 3.5 | 3.6 | 25.2 | 0.14 | 0.44 | 4.6 |
| 1997 | 11.2 | 1 083.0 | 3.9 | 10.7 | 27.3 | 0.15 | 0.52 | 5.0 |
| 1998 | 11.6 | 1 129.6 | 4.1 | 6.5 | 27.7 | 0.17 | 0.54 | 6.2 |
| 1999 | 11.4 | 1 109.7 | 4.3 | 4.2 | 27.0 | 0.16 | 0.55 | 7.4 |
| 2000 | 10.7 | 1 046.5 | 4.5 | 3.5 | 26.6 | 0.14 | 0.54 | 6.3 |
| 2001 | 12.0 | 1 179.4 | 4.6 | 2.3 | 25.9 | 0.17 | 0.61 | 6.5 |
| 2002 | 14.7 | 1 442.1 | 4.8 | 5.3 | 25.0 | 0.20 | 0.70 | 7.3 |
| 2003 | 18.4 | 1 817.1 | 5.0 | 4.5 | 25.2 | 0.22 | 0.74 | 7.6 |
| 2004 | 23.1 | 2 281.9 | 5.3 | 5.8 | 26.0 | 0.24 | 0.80 | 6.9 |
| 2005 | 25.0 | 2 483.4 | 5.5 | 3.1 | 25.8 | 0.24 | 0.82 | 5.9 |
| 2006 | 26.0 | 2 585.6 | 5.8 | 6.2 | 25.9 | 0.23 | 0.78 | 5.0 |
| 2007 | 31.4 | 3 131.3 | 6.2 | 6.0 | 26.1 | 0.24 | 0.82 | 4.8 |
| 2008 | 34.0 | 3 405.7 | 5.9 | -4.3 | 25.1 | 0.23 | 0.81 | 4.3 |
| 2009 | 27.4 | 2 749.5 | 5.0 | -14.5 | 24.7 | 0.21 | 0.80 | 4.6 |
| 2010 | 28.6 | 2 876.5 | 5.4 | 7.9 | 25.7 | 0.19 | 0.79 | 4.1 |
| 2011 | 30.7 | 3 096.7 | 5.4 | -0.14 | 25.6 | 0.18 | 0.76 | 3.7 |
| 2012 | 28.0 | 2 834.4 | 5.3 | -1.8 | 26.0 | 0.16 | 0.72 | 3.4 |
| 2013 | 29.3 | 2 975.4 | 5.2 | -2.2 | 25.6 | 0.17 | 0.73 | 3.5 |
| 2014 | 31.2 | 3 175.8 | 5.6 | 6.3 | 26.3 | 0.18 | 0.78 | 3.9 |
| 2015 | 28.5 | 2 914.0 | 6.0 | 7.8 | 27.2 | 0.18 | 0.83 | 4.6 |
| 2016 | 28.8 | 2 955.4 | 6.1 | 1.8 | 26.7 | 0.18 | 0.84 | 4.8 |
| 2017 | 31.1 | 3 196.7 | 6.3 | 3.3 | 26.0 | 0.18 | 0.85 | 4.4 |
| 2018 | 33.0 | 3 405.5 | 6.3 | 0.74 | 24.8 | 0.18 | 0.84 | 4.3 |
Economy of Hungary
Hungary - a state with a rapidly developing economy, market reforms in it are almost completed. Benefits: Stronger by 1998, Hungary opened up to foreign direct investment. Effective tax system. Reducing bureaucracy. Since the end of the 90s. stable growth based on exports. Developed industrial production, especially in new modernized firms. Fully convertible currency since mid-2001 Decreasing inflation.
Weaknesses: insufficient energy production. Gap in domestic development, eastern rural areas do not receive sufficient funding. Big income disparity. Lack of control over money laundering. Hungary is on the OECD black list.
Hungary mainly exports engineering products and other manufactured goods.
Main partner for foreign trade- Germany (over a quarter of Hungary's trade turnover in 2006).
September 19, 2006 in Budapest, popular unrest in connection with the publication of statements by the Prime Minister about the deplorable state of the economy.
The largest bank in Hungary - OTP Bank. Currency - Hungarian forint.
In the two decades following the end of World War II, Hungary transformed from a predominantly agrarian country to an industrial-agrarian country. In 1968 Hungary began to carry out economic reform known as the New Economic Mechanism. Industrial and agricultural enterprises were given greater autonomy in the production process and in making sales and marketing decisions; trade with Western countries expanded significantly; domestic prices increasingly converged with world market prices, and people were given wide freedom to engage in all kinds of small private businesses.
In 1990, Hungary began the transition to a free market economy. Some important economic measures were taken in the early 1990s, but major reforms began in 1995 when Finance Minister Lajos Bokros presented his radical program.
The new government began to introduce a market economy by reducing the share of state ownership, increasing the share of foreign capital in investment, and removing obstacles to freeing the market and introducing open competition. By 1994, the share of the private sector in the gross domestic product increased to 45%, and foreign direct investment increased from $200 million to $5 billion. However, the abrupt transition created a significant budget deficit and left many on the brink of survival. In 1995, after the introduction of the Bokros reforms, Hungary's progress towards a market economy gained momentum. Foreign investment continued to grow, accounting for half of all foreign investment in the countries of the former Eastern Bloc. In 1995 more than $4 billion of foreign direct investment (FDI) was sent to Hungary, in 1996 and 1997 $3.6 billion were invested.
Hungary- industrial-agrarian state. There is a fairly developed infrastructure, a relatively high level of education, qualifications, social mobility and innovative susceptibility of the population. Hungary's most important natural resources are fertile land and water resources. More than half of the country's land is arable, and the climate also favors the development of agriculture. Energy fossil deposits are relatively modest. High-quality coal is mined in Komlo, brown coal in the Northern Mountains (near Ozd) and in Transdanubia. Previously, mined coal satisfied all national energy demands, now coal covers no more than a third of the country's needs. The most significant mineral resources that the country has are bauxites (one of the richest deposits in Europe), manganese ores (Bakony Mountains), copper and zinc ores. Lead ores, uranium, molybdenum, dolomite, and kaolin are being mined. As Hungary seeks to reduce its dependence on oil imports, nuclear power plants are taking priority in the development of the energy sector.
During the 10 months of 2002, the volume of industrial production increased by 1.8% as compared to the previous year. The most significant growth (2.6%) was observed in the processing industry. The increase in production was obtained through exports. Exports of goods manufactured by industry increased by 4.5%, while domestic sales decreased by 0.1%. Mechanical engineering played a leading role in the growth of export sales of industrial production. The chemical industry turned out to be the most competitive among the traditional industrial sectors: by the mid-1990s. the growth of its production amounted to 25%. New promising industries have also appeared: the production of telecommunications and automotive equipment.
In the first 10 months of 2002, the construction industry experienced rapid growth. Production in the construction industry increased by 21.5% compared to the previous year. The main role among the sub-sectors was played by the growth in the productivity of underground and assembly construction. Significant investments were made in transport and communications infrastructure, as well as in municipal utility networks, and the construction of industrial and commercial facilities and shopping centers accelerated. Whereas in the early 1990s large state-owned enterprises dominated the construction industry, since 1994 more than 60% of production has come from domestic joint-stock companies. The share of foreign capital in the construction industry exceeded 1/3, and in the production building materials is 70%.
One of the most important and most productive sectors of the Hungarian economy is tourism, which accounts for about 10% of GDP. The material base of tourism is more than 140 thousand places in accommodation facilities of various categories. About 300 thousand people work in tourism, which is about 7% of the active population. In 2001 tourism revenue was 4.4 billion euros, and the balance sheet was +2.9 billion euros. Hungary receives over 30.7 million foreign visitors, and for 11 months of 2002 - 29.4 million, more than half of which are tourists. The average duration of stay of foreign tourists in the country is 3-4 days. The Office of the Trade Advisor for Tourism of the Republic of Hungary (at the embassy) operates in Moscow.
In Hungary, wheat, corn, sugar beets, sunflowers, onions, cucumbers, and peppers are grown. Wine production is developed, mainly table wines are produced, Hungarian Tokay wine (from the slopes of Mount Tokay) is popular. The industry for processing agricultural products is developed: canned vegetables, compotes, juices, canned meat. In comparison with the previous year, for 10 months of 2002, the sale of agricultural products decreased by 5%. The number of cattle increased by 3.5%, while the number of pigs and poultry decreased by 11.1% and 6.5%, respectively. Sales of crop and horticultural products decreased. At the same time, the sale of fruits increased by 13.8%, while sales of grapes and wine decreased by 5.4%. The export of the food industry increased by 2.6%.
More than half of the national income comes from foreign trade. More than 2/3 of exports go to the EU countries: Germany, Austria, Italy, the Netherlands. The composition of exports: engineering products 51.9%, other industrial goods 32.7%, food and food industry products 10.5%, raw materials 2.9%, energy and electricity 1.9%. Composition of imports: engineering products 46.5%, other manufactured goods 40.2%, energy carriers and electricity 6.6%, foodstuffs and food industry products 3.7%, raw materials 3.0% The volume of domestic trade increased over the 10 months of 2002 by 11.4%. During the year, the growth rate slowed down. In the total volume of retail trade, the largest share (31.4%) was made up of food products.
The volume of foreign direct investment in 2001 was 2.4 billion euros. The amount of foreign direct investment, together with loans provided by investors for joint ventures (JVs) and a material contribution to the founding capital of the JV, approached 28 billion euros by the beginning of 2002, and the number of enterprises with foreign capital exceeds 26,000. At the end of 2001, Hungary had 2,340 euros of foreign investment per capita. 45 of the 50 largest multinational companies in the world are already present on the Hungarian market. They generate one third of Hungary's GDP and employ 43% of the industrial workforce. Most of the capital came from Germany, the United States of America, France, Austria and Holland, Israel, Switzerland and Italy are significant investors. The largest investments were made in the field of communications, electric power, heat, gas and water supply, processing industry. Significant investments of foreign capital were made in the financial and banking sectors.
On December 12, 1990, an Agreement was signed between the Government of the Republic of Hungary and the Government of the RSFSR on trade and economic relations, which created a modern framework for cooperation between the two countries. This agreement defines market conditions trade, such as the settlement in hard currency, the application of world market prices, as well as the promotion of authorized state bodies in the development of trade carried out by public and private sector organizations.
In 1999, Hungary introduced new restrictions on imports from Russia and created conditions aimed at ousting Russian goods from the Hungarian market. Last year, Russian exports to Hungary fell by 21%, while deliveries from Hungary to Russia fell by 33%. In the first two months of this year, compared to the previous year, mutual supplies continued to decrease, while Hungarian exports to Russia decreased by 70%. Goods from Russia to Hungary are subject to the highest customs duties and fees. Thus, Russian metal products have been practically ousted from the Hungarian market. Since the new year, an additional 30% duty on nitrogen fertilizers from the Russian Federation has been introduced.
Russian exports consist almost entirely of energy and commodities, while Hungarian exports are dominated by food and consumer goods.
In Hungary, after the change of the social system, from year to year there was a significant increase in the number of business companies and other private enterprises. There are currently only 800,000 employed in the country economic organizations. In Hungary, the right to conduct business economic activity are used by economic companies, cooperatives, private entrepreneurs, as well as Hungarian subsidiaries of enterprises located abroad. Among the operating economic organizations, 96.5% are micro-enterprises with less than 10 employees, the share of small enterprises is 2.7%, medium-sized enterprises 0.6%, while large enterprises account for only 0.2%.
Currently, there are several types of commercial organizations: a general partnership (PT), a limited partnership (CT), a limited liability company (LLC) and Joint-Stock Company(AO). After signing the founding document, having secured the departmental permits necessary for the start of activities, commercial organization begins its existence from the date of registration with the judicial authority (which registers and supervises the activities of commercial and non-profit organizations) at the location of the company. In parallel with this, the organization must register with tax authority and in the social security agency.
Of all forms of commercial and non-commercial organizations in 2001, the most popular are CPs (47%), followed by LLCs (40.4%), while JSCs represent only 1.1%. Of the total number of registered organizations, 96.6% are micro-enterprises (with less than 10 employees), the share of small enterprises (from 10 to 50) is 3.4%, medium enterprises (from 50 to 200) 0.9%. Large enterprises (more than 200) account for only 0.1%.
Since February 1, 1999 in Hungary individual entrepreneurs may be not only domestic individuals but also citizens of EU member states. The local administration, on the basis of relevant documentation and necessary departmental permits, issues a certificate of individual entrepreneurship to the applicant. Provides him with a social security checking account number, tax and statistical codes.
Hungarian monetary system
Since 1987, a two-tier banking system has been operating in Hungary in 1987: the Hungarian National Bank (VNB) carries out the emission and credit policy, general control over the financial market, and authorized financial institutions lend directly to economic entities.
In 1991–1994 the government's program of banking consolidation was implemented, aimed at improving the crisis state of most banks and increasing their assets, improving the loan portfolio. Since 1995, the sale of blocks of shares in consolidated banks to reputable Western financial institutions began. By 1998, the privatization of Hungarian banks was practically over. The level of presence of foreign capital in the banking system is 63%.
The Hungarian system of credit institutions by 2000 already consisted of 43 banks (90.3% of all financial and credit operations), 226 savings cooperatives (5.6%), 9 specialized financial institutions (3.6%) and 4 housing savings cash register (0.5%).
The degree of concentration of banks in Hungary is quite high: the top six banks collectively own almost 60% of the assets of the banking system.
The public finance system structurally consists of four subsystems: the central government (central level), local governments (local level), separate state funds, and social insurance bodies.
In 1998–2001 The overall level of the central government budget deficit has consistently decreased from 4.8% to 3.3% of GDP. In 2002, there was a sharp surge - up to 9.6% of GDP, caused by a change in government and a massive increase in social benefits.
At the same time, the revenue part of the state budget amounted to 17.8 billion dollars, of which about 80% were tax revenues (taxes, excises, duties). Measures to improve the efficiency of the private sector led to a reduction in the degree of centralization of budget revenues: the share of state budget revenues in GDP in 1994-2002. decreased from 52.5 to 27%.
The main place in tax revenues to the budget is occupied by the general turnover tax (analogous to Russian VAT), whose share is 39%, income tax (24% of revenues), consumer tax and excises (19%), business profit tax (called corporate tax) - 10%.
In Hungary, the treasury system of budget execution is used, i.e. all funds necessary for state institutions are received and spent from the so-called. single treasury account. The Hungarian State Treasury is responsible for the technical work of financing the central budget.
In addition, the subdivisions of the Hungarian financial system are also the State Supervision of Financial Organizations (activities related to monitoring compliance with the law by participants in the stock and currency markets), a set of banking and financial institutions, organizations providing services for non-state management of financial markets (stock and commodity exchanges, central clearing house, brokerage and dealer firms, etc.), insurance companies and pension funds.
All functions related to the management of public debt (including the currency and forint components) are performed by a specially created Center for Public Debt Management (PDMS). The CDGD was tasked with a gradual transition from the practice of attracting foreign loans to finance external debt obligations to the issuance of government bonds denominated in the national currency - forints.
The growth of the gross domestic product in 2005 was (according to preliminary data) 4.1% against 4.6% in 2004.
Hungarian transport
Hungary has a well-developed network of transport communications. The length of public roads is more than 30 thousand km, 90% of them have a hard surface. Railways - 7.9 thousand km. The length of inland waterways is 1.6 thousand km. The main river port is Budapest. Water transport is especially important for the transport of heavy goods such as iron ore and coal. Except during the coldest part of winter, the Danube is navigable throughout its entire length in Hungary, and the Tisza as far as Szolnok.
Domestic air transportation is not carried out, there is a network of small airfields for receiving small aircraft. Ferihegy International Airport is located near Budapest.
The transit role of the country is also important. Oil pipelines Druzhba-I (from Ukraine), Druzhba-II (from Slovakia) and Adria (from Croatia), gas pipelines Bratstvo (from Ukraine) and Baumgartner-Gyor (from Austria) pass through the territory of Hungary ); the total length of pipelines is 7.2 thousand km. The construction of high-speed highways is being actively carried out within the framework of the so-called. Helsinki transport corridors: in 2002, already 60% of the Hungarian sections of the “corridors” met the established European requirements.
The total freight turnover is 26.9 billion tkm (2002). Structure by types of transport: road - 51%, rail - 30%, pipeline - 15%, water - 3%. Structure by directions of transportation: international - 60%, domestic - 40%. Water and air transport are practically not used in domestic cargo transportation. Passenger traffic on intercity transportation is 785 million people, on intracity transportation - 2.8 billion people. (2002).
Agriculture in Hungary
The main agricultural regions of the country are located on the plains of the central and eastern parts of Hungary. The soils of Hungary are generally fertile and favorable for the development of agriculture, but vary greatly in composition and fertility. The dominant type is chestnut and podzolic soils, which cover 2/5 of the country's territory. About 25% of the area of Hungary is occupied by black soil. These soils are common in a large part of the Alfeld. Hungarian chernozems are distinguished by a powerful humus horizon, a weak alkaline reaction, and high fertility.
In 1990, the process of restructuring and privatization of agriculture began. The landowners were given back their property, many cooperatives were dissolved and their lands were privatized. There is a gradual transition to mixed system consisting of private and family farms, land associations and reorganized cooperatives based on fractional ownership and market-oriented production. Already in 1995, only about 30.6% of suitable land was cultivated by cooperatives, 17.6% was in state ownership, the rest of the land belonged to private individuals and enterprises.
Despite a severe drought in the early 1990s and the difficulties associated with the transition to a market economy, agricultural products continued to be an important export item.
The agrarian policy of the government is aimed at strengthening the role of agriculture in the economy, especially in the traditional sectors for Hungary: the production of corn, wheat, meat, vegetables, fruits, wine.
In the structure of agricultural production, the share of crop and livestock production is approximately equal.
Crop production is represented mainly by grain farming, as well as vegetable growing and horticulture (including viticulture). Grapes are grown almost everywhere in Hungary, the wines of 14 wine-growing regions, most of which are located at the foot of the middle mountains, are especially valued. Hungary is famous for the excellent quality of its white (Tokaj, Bada-chon) and red (Egribikever) wines. Suffice it to mention, for example, the famous Tokay wines “asu” and “nuggets”, about which Goethe spoke as follows: “Tokay wine is the king of wines and the wine of kings.”
62.6% of the sown area is occupied by cereals and grain legumes, 13% by technical crops, 2.9% by vegetables, and 19.1% by fodder crops. Among them: wheat, corn, industrial crops (sugar beet, sunflower), hemp. Fruit growing is also developed in Hungary, the climate is favorable for growing apples, apricots, peaches, plums, pears, cherries, etc. The famous Jonathan apple variety is grown in the northeast. Large arrays of apple orchards are also spread between the Danube and Tisza rivers, as well as in the southwest. In Europe, Hungarian apricots are well known, grown throughout the country, especially in the interfluve of the Danube and Tisza. The main peach growing areas are the Balaton Middle Mountains, the vicinity of Budapest.
Livestock provides more than 60% of domestic agricultural income. The most developed are pig breeding, breeding of cattle for meat and dairy purposes, and poultry farming. Hungary is a major exporter of chickens, geese, ducks, and turkeys. The needs of the domestic market are also satisfied by sheep breeding and fish breeding in artificial reservoirs. Hungary is one of the main honey producers in Europe.
Fish ponds supplied with fry from hatcheries occupy more than 25,300 ha, i.e. 0.3% of the entire territory of the country. Fish for commercial purposes is also caught in the Danube and Lake Balaton. In 1992, the total catch of fish, primarily carp, was 20,000 tons.
Hungary gradually restored its forests, which in 1998 covered an area of more than 1.6 million hectares, i.e. 17% of the entire territory of the country. Every year the country imports a large amount of timber.
Despite the steady positive trends in the development of agriculture, the volume of production here in 2001 was only 72% of the 1990 level. In addition, integration with the EU has significantly increased competition in the sale of agricultural products in the domestic, Western European and other markets.
Hungarian industry
The country is not rich natural resources, but has favorable agro-climatic and recreational conditions, is advantageously located geographically.
The only mineral found in significant quantities is bauxite, mined near Lake Balaton. In 1983, Hungary was the world's seventh largest producer of bauxite with 2.9 million tons mined. However, by the end of the 1990s, many mines were closed, and bauxite production has fallen to around 1 million tons, down from 1.7 million tons in 1992.
The main mineral in Hungary is coal. Brown coal and lignites are mainly distributed. Mining is carried out in the area of the cities of Tatabanya, Dorog, Shalgataryan, Gyengyös, Ozd, Miskolc. Coal is also mined in the Mecsek mountains. In the Miskolc region (in the northeast) there are deposits of iron ore. Hungary also has reserves of metals such as iron, gallium, molybdenum, copper, zinc, gold, manganese. Hungary produces small amounts of oil and natural gas from wells in the Szeged Basin and the Zala region in the country's southwest. In 1998, 3.5 million tons of oil and 4.7 billion cubic meters were produced here. m of natural gas. Manganese and iron ore deposits are being developed. Hungary has uranium ore, but all information about its extraction is classified.
Manufacturing industries are the most developed in industry (90.6% of GDP) The leading branch of the manufacturing industry is mechanical engineering, including:
Automotive industry (Ikarus plant in Budapest and Szekesfehervar - Europe's largest bus manufacturer).
Manufacture of locomotives, ships, cranes.
Electrical and radio-electronic industry (including the production of communications, computers, medical equipment and devices (Budapest, Szekesfehervar)).
Machine tool industry (Budapest, Miskolc, Esztergom).
Manufacture of agricultural machinery and equipment for light and food industries.
Electrical products, electronics, engines, diesel locomotives, motorcycles, buses, river boats, industrial equipment, televisions and radios, household appliances, etc. are produced. There are ferrous and non-ferrous metallurgy enterprises.
In the chemical industry, an important place is occupied by the production of mineral fertilizers, plant protection products, organic synthesis products, the rubber industry, various types of plastics, and synthetic materials are developing. Pharmaceutical production has reached a relatively high level (15% of the value of industrial products). With a long tradition, this industry is backed by a strong research and development base, with the help of which ever more effective means of combating various diseases are being developed.
The food and flavor industry is significant: large meat and dairy and canning enterprises. Of the branches of light industry, the most developed are sewing, leather and footwear, and knitwear. Hungarian fabrics, ready-to-wear, shoes, furniture, as well as products of the meat processing and canning industries are well-deservedly known in many countries of the world.
The food industry relies almost entirely on the domestic raw material base, while some sectors of the light industry require significant imports of raw materials and semi-finished products. Hungary imports cotton, wool, flax, raw leather, timber, and cellulose.
After a recession in the late 1990s production is stabilizing in metallurgy and light industry, which works almost exclusively on raw materials supplied by the customer. The share of energy and water supply is 8.9%. In the extractive industries, production is gradually curtailed.
Hungarian industry is quite dependent on the state of the world market: more than half (52%) of all industrial production is exported. Large enterprises export - depending on the industry - 60-80% of their products. The needs of the domestic market are satisfied mainly by small and medium-sized enterprises (the number of employees, respectively, is up to 50 and up to 300 people).
In addition, handicrafts are widespread in Hungary: embroidery, ceramics, curtains, wooden toys, dolls, wicker baskets, porcelain, goose down products.
Energy industry in Hungary
The energy needs of the country are less than 50% provided by their own resources. Oil and natural gas are imported from Russia in transit through Ukraine. The Adriatica oil pipeline is operating from the port of Rijeka in Croatia. Natural gas also comes to the country from Romanian Transylvania.
In 1997, about 69.3% of Hungary's total energy consumption came from hydrocarbon sources, 12.6% from coal, 10.1% from nuclear power, 7% from exported electricity, and 1.0% from wood.
In 1983, a nuclear power plant went into operation at Pakse, on the Danube, south of Budapest. The 4 reactors at Pakse produced 13,968 megawatts of electricity in 1997, providing approximately 38% of the country's energy consumption as a whole.
Foreign economic relations of Hungary
A characteristic feature of the Hungarian economy is a high degree of openness and participation in the international division of labor. Foreign trade has a positive trend, but is chronically passive. Thus, the volume of exports in 2002 was 34.3 billion dollars, imports - 37.6 billion dollars.
In the commodity structure of exports in 1998–2002. products with a high degree of added value prevailed: the groups “machinery and equipment” (57–59%; mainly communications equipment, sound processing equipment, automated data processing systems, household and industrial electrical appliances) and “manufactured products” (29–31% ). Agricultural products accounted for 7-8% of exports.
The main contingent of imports was also "machinery and equipment" (50-52%) and "processed products" (35-38%). The share of energy carriers in imports is 6–8%, and Russian energy carriers account for 70% of all energy supplies to Hungary.
More than 90% of Hungarian exports in 2002 were sent to European countries. 75% of imports came from there. The largest trading partners are Germany, Austria, Italy, while the share of the EU reaches 72%. Russia ranks 8th among trading partners.
They prefer to conduct business with America prudently, despite the attractiveness of trade and economic cooperation with it, because they see the overseas economy as the main factor of uncertainty and instability for the entire world economy. Hungary's relations with neighboring countries are developing dynamically, with Hungarian experts predicting high rates mainly in relations with Poland and Slovenia.
A favorable business climate in the country, a fairly high position in the rating of international agencies attract foreign capital. By the end of 2002, 24.5 billion dollars of foreign investment had been accumulated (3rd place in Eastern Europe after Poland and the Czech Republic). For comparison: in the second half of the 1990s. the influx of foreign capital investment was only about 2.0 billion dollars annually. 70% of investments are associated with the acquisition of privatized enterprises, 30% - the construction of turnkey enterprises.
Foreign economic relations are carried out not only at the state-formal level, but also at the level of business circles. In this regard, the example of business-like Russian-Hungarian cooperation is indicative. In 2004, according to the Ministry of Economy of the Republic of Hungary, the trade turnover of the Russian-Hungarian trading house should approach $10 million. Fifteen years ago, one of the leading CMEA countries, Hungary, strengthened the economy of the eastern bloc with electronics, optics, medical equipment, pharmaceuticals and Ikarus buses - 11 thousand per year.
For more than a decade, the political and economic ties between Hungary and the USSR have been strengthened by the Druzhba gas pipeline and the Mir energy system. Meanwhile, the country with the highest standard of living in Eastern Europe and a developed industrial infrastructure has significant potential not only for developing joint business with Russia, but also for integrating the interests of neighboring states seeking to trade with us.
Moscow businessmen took upon themselves the solution of these problems, establishing in Budapest the Russian-Hungarian trading house "G.A.K.-3000" Vladimir Cherepanov (formerly the head of a large Moscow machine-building plant), founder and CEO Pskovlesprom and Podsevylesprom CJSC are engaged in deep processing of wood according to export standards. The annual production volume is about 25 thousand cubic meters of lumber.
Boards, moldings, garden houses are exported to Hungary from the Pskov region. The Russian-Hungarian Trading House (85% of Russian and 15% of Hungarian capital) began its activity by organizing permanent exhibitions of industrial and agricultural products: Russian - in Budapest and Hungarian - in Pskov.
When choosing an exhibition site, Pskov was preferred among several cities as a zone of cross-border cooperation, the center of the intersection of transit highways.
The exhibitions are designed to promote products from the regions and republics of the Northwestern Federal District to Europe. Pskov plants of mechanical drives, ADS, Pskovkabel, sewing factory Slavyanka have already expressed their desire to be exhibitors in Budapest. Hungarian entrepreneurs want to see the products of Novgorod, Vologda, Petrozavodsk, Kaliningrad enterprises in Budapest. Similar interest was expressed by businessmen from Slovenia, the Czech Republic, and Austria - countries bordering Hungary.
Hungarian textile and shoe makers, pharmacists and instrument makers, winemakers and producers of canned vegetables send goods to the permanent exhibition in Pskov.
Attracting the Union of Entrepreneurs and the Union of Hungarian Craftsmen to the Budapest exposition will give North-West manufacturers a chance to test the competitiveness of their goods before Russia joins the World Trade Organization, and someone to enter the Eastern European market without waiting for the WTO to tighten export conditions.
Socio-economic reforms in Hungary
The economic policy of the country's leadership in recent years has been aimed at deepening market reforms, consolidating economic growth trends, expanding the geography of foreign economic relations and integrating into European economic structures. It is based on the legislative protection of all types of property, including private property, privatization and the widespread attraction of foreign investment. The share of the private sector in the country's economy has exceeded 75%, and in terms of foreign investment, Hungary is the leader among the countries of Central, South-Eastern and Eastern Europe. The most significant investors are the USA, Germany, Austria.
In 2000–2001 The government failed to implement plans to reduce inflation. By the end of 2001, this figure was about 8%, and the stratification of society, the rather low growth in real incomes of the population (according to the results of 2001 - by only 1.9%) are fraught with an increase in social tension.
Nevertheless, in recent years, Hungary has been able to maintain relatively high economic growth rates. If in the early 1990s - during the period of change of the socio-economic system - GDP has been steadily declining, then, since 1995, its stable growth has been noted.
Hungary is notable for the comparative smoothness of social contrasts, although property stratification is growing.
The system of social benefits is being restructured according to the principle of need. The main goals of the reform are to reduce the burden of the state budget and reduce the volume of the shadow economy. However, the initiated transition to insurance financing of health care is accompanied by a reduction in hospital beds and medical staff, a revision of the drug reimbursement system, and an expansion of the range of paid services.
As for the pension system, its goal is to move to a mixed pension system, which implies the introduction of insurance principles for all elements of pension provision and an increase in the personal responsibility of the future pensioner for the accumulation of pension contributions.
Thus, the Hungarian pension system combines the principles of pay-as-you-go and funded systems and includes three elements: basic pensions paid as part of social insurance, based on the principle: one year of work experience - 1% of the pension paid; compulsory pension insurance, involving the deduction of 8% of earnings; voluntary pension insurance in about 250 non-state pension funds.
Hungarian tourism
One of the fastest growing sectors of the Hungarian economy is tourism. Tourist infrastructure (hotels, catering points, beach, health and entertainment complexes, swimming pools, hunting lodges, fishing spots, etc.) is aimed at visitors with different incomes. In recent years, the state has allocated for the development of resort tourism 29.3 billion for. (120 million euros). In addition, the state has announced tenders for the construction of thermal spas and health centers. In addition to building permits, private firms received subsidies and, adding their own funds of HUF 39.7 billion to the subsidies, invested a total of HUF 89 billion. in the construction of 11 new hotels and the modernization of 13 hotels.
Hungary annually receives from 10 to 30 million foreign tourists. Foreign exchange earnings from tourism is about 3.4 billion dollars a year. The increase in the number of foreign tourists visiting Hungary is primarily due to the appearance of cheap "discount" Western airlines on the Hungarian air transportation market, as well as an increase in the level of services, the development of natural, architectural, and health-improving facilities. First in number foreign citizens visiting Hungary, is Romania, followed by Slovakia, Austria, Serbia and Montenegro, Germany and Ukraine. In addition, the influx of tourists from Asia (by 22.6%) and America increased.
In the two decades following the end of World War II, Hungary transformed from a predominantly agrarian country to an industrial-agrarian country. In 1968, Hungary embarked on an economic reform known as the "new economic mechanism." Industrial and agricultural enterprises were given greater autonomy in the production process and in making sales and marketing decisions; trade with Western countries expanded significantly; domestic prices increasingly converged with world market prices, and people were given wide freedom to engage in all kinds of small private businesses.In 1990 Hungary began the transition to a free market economy. Some important economic measures were taken in the early 1990s, but major reforms began in 1995 when Finance Minister Lajos Bokros presented his radical program.
The new government began to introduce a market economy by reducing the share of state ownership, increasing the share of foreign capital in investment, and removing obstacles to freeing the market and introducing open competition. By 1994, the share of the private sector in the gross domestic product increased to 45%, and foreign direct investment increased from $200 million to $5 billion. However, the abrupt transition created a significant budget deficit and left many on the brink of survival. In 1995, after the introduction of the Bokros reforms, Hungary's progress towards a market economy gained momentum. Foreign investment continued to grow, accounting for half of all foreign investment in the countries of the former Eastern Bloc. In 1995 more than $4 billion of foreign direct investment (FDI) was sent to Hungary, in 1996 and 1997 $3.6 billion were invested.
national income. In the 1980s, Hungary was the only country in the Soviet bloc (with the exception of Romania) that published national income statistics that corresponded to generally accepted world statistics. In 1980, Hungary's gross domestic product (GDP) - the value of goods and services produced within the country - was approximately the equivalent of $20 billion, or about $2,000 per capita. In the late 1980s, GDP began to stagnate, and during the transitional period of the 1990s, the volume of gross domestic product began to decrease in the economy. In 1991, GDP was 11.9% below its 1990 level. By 1996, Hungary's gross national product had increased to the equivalent of $75 billion (or $7,500 per person).
In 2003 year of GDP Hungary became equal to 139.8 trillion dollars or 13.900 per capita.
Labor resources. In the postwar period, the main structural change in system labor resources there was a flow of labor from agriculture (which in 1949 employed more than half of all the employed in the country) to industry. Between 1949 and 1983, the number of people employed in mining and manufacturing increased to 857,000, while in agriculture it decreased to 1,113,000. The number of employees registered in 1992 was distributed as follows: 29% in industry; 15% in healthcare, social infrastructure and culture; 14% - in agriculture and forestry; 13% - in trade; and 9% in transport and telecommunications. Another important change in the structure of employment was the increase in the share of women; in 1949 they were only 25% of the employed, but in 1994 the figure was 52.8%. The corresponding trend slowed down somewhat in the second half of the 1990s, as a result, the share of women in the number of employees decreased to 49.8%.
The transition to capitalism in the early 1990s caused a sharp increase in the unemployment rate: the number of registered unemployed people increased from 79,521 people in 1990 to 657,331 people at the end of 1993. However, starting from 1994, the unemployment rate began to slowly decrease and reached 10% at the end of 1998.
Agriculture. 70% of the territory of Hungary is occupied by agricultural land. Forests cover 17% of the territory. The main agricultural regions of the country are located on the plains of the central and eastern parts of Hungary.
During the post-communist period beginning in 1990, the government undertook a massive program of agricultural restructuring and privatization. The landowners were given back their property, many cooperatives were dissolved and their lands were privatized. It wasn't about going back to the old small-land agriculture; the move to a mixed system of private and family farms, land associations and reorganized cooperatives based on shared ownership and market-oriented production seemed sensible. Already in 1995, only about 30.6% of suitable land was cultivated by cooperatives, 17.6% was in state ownership, the rest of the land belonged to private individuals and enterprises.
Despite a severe drought in the early 1990s and the difficulties associated with the transition to a market economy, agricultural products continued to be an important export item. In 1992, about 16.5% of GDP came from agriculture, but production of major crops declined as attempts to develop new markets and new farming methods led to an inevitable temporary decline.
In 1997, Hungary processed 717,000 tons of grapes, of which 612 tons were used to make wine. Wine production in 1997 amounted to 394 million liters, about a quarter of which is exported.
At the same time, the number of livestock, especially the number of pigs, increased significantly. In 1997 Hungary had 4.93 million pigs, 871,000 cattle, 858,000 million sheep and 31 million poultry.
Fish farm. Fish ponds supplied with fry from hatcheries occupy more than 25,300 ha, i.e. 0.3% of the entire territory of the country. Fish for commercial purposes is also caught in the Danube and Lake Balaton. In 1992, the total catch of fish, primarily carps, was 20,000 tons.
Forestry. Hungary gradually restored its forests, which in 1998 covered an area of more than 1.6 million hectares, i.e. 17% of the entire territory of the country. Every year the country imports a large amount of timber.
Mining industry. Hungary has very limited mineral resources. The only mineral found in significant quantities is bauxite mined near Lake Balaton. In 1983, Hungary was the world's seventh largest producer of bauxite, producing 2.9 million tons. However, by the end of the 1990s, many mines were closed, and bauxite production was reduced to about 1 million tons - compared to 1.7 million tons. tons in 1992. Near Pecs and Komlo in the southwest there are small reserves of low-grade anthracite, and in the Budapest area there are large deposits of brown coal (lignite). In 1985 Hungary produced 2.6 million tons of anthracite and 21.4 million tons of brown coal; in 1991 their production was reduced to 1.6 million tons of anthracite and 15.3 million tons of brown coal. Iron ore deposits are located in the Miskolc region (in the northeast). Hungary produces small amounts of oil and natural gas from wells in the Szeged Basin and the Zala region in the country's southwest. In 1998, 3.5 million tons of oil and 4.7 billion cubic meters were produced here. m of natural gas. Hungary has uranium ore, but all information about its extraction is classified.
Energy. In 1997, of the total amount of energy consumed (1055 petajoules), about 69.3% of it was obtained from hydrocarbon sources, 12.6% from coal, 10.1% from nuclear energy, 7% from exported electricity, 1.0% from wood.
In 1997 Hungary consumed 37,215 megawatt hours of electricity, 93% of which was produced in the country. In 1983, a nuclear power plant went into operation at Pakse, on the Danube, south of Budapest. The 4 reactors at Pakse produced 13,968 megawatts of electricity in 1997, providing approximately 38% of the country's energy consumption as a whole.
Manufacturing industry. Until the 1970s, following one after another five year plans sent a significant part of the investment in heavy industry, especially in those industries that produce iron and steel, industrial equipment, trucks and buses, cement and chemicals. After the introduction in 1968 of the New economic mechanism more attention was paid to the development of the food industry - the main source of export sales in the capitalist markets - and the production of computers, precision engineering products, scientific research instruments, industrial and consumer electronics, pharmaceutical products, communications equipment and consumer goods. Although most Hungarian factories were so outdated and inefficient that their products could only find export markets within the Soviet bloc, Hungary by the mid-1980s had developed modern, highly skilled industries that allowed it to enter international markets.
Although more than one-fifth of Hungary's national income came from manufacturing, heavy industry was in deep crisis by the early 1990s due to high production costs, limited mineral resources, and outdated machinery and equipment. Key industrial complexes in Debrecen and Győr continued to operate, but in traditional iron and steel centers like Dunaujváros and Miskolc, unemployment soared.
Transport. Budapest is the central hub of the Hungarian transport system, which in 1995 included 1,576 km of navigable waterways, 69,957 km of roads and 7,635 km of railways (1998), of which about 29% were electrified. Budapest airports Ferihegy 1 and Ferihegy 2 serve both domestic and international airlines.
In the 1950s by railways almost 80% of all cargo was transported, and only 13% by cars. By 1992, only about 41% of all cargo was transported by rail and 40% by road. However, rail transport continued to carry the bulk of long-distance cargo. Water transport is especially important for the transport of heavy goods such as iron ore and coal. Except during the coldest part of winter, the Danube is navigable throughout its entire length in Hungary, and the Tisza as far as Szolnok.
Internal trade and services. From the end of World War II until the fall of communism, all wholesale and almost all retail trade was carried out by state-owned firms. In 1989, almost 40,000 retail and food outlets were located in private property. In 1992, their number reached 111,513, and by 1997 - 152,000 (two-thirds of all stores).
By 1997, more than four-fifths of the officially registered service market was occupied by private firms.
Foreign trade and payments. Before the Second World War, Hungary traded mainly with European countries, and Soviet Union accounted for less than 1% of its trade. In the first decade after the communists came to power, about 90% of Hungary's foreign trade was with the countries of the Soviet bloc. The main exports were heavy industry equipment, ships, locomotives and transport equipment, chemicals, textiles, oil and oil products, ores and products; imports - machine tools, agricultural equipment, coke, iron, cotton, wool and wood. After 1958 Hungary expanded trade with the West and third world countries. By 1982, the countries of the Soviet bloc accounted for 55.2% of foreign trade.
In the 1980s, West Germany became Hungary's main trading partner outside the Soviet bloc. In 1992, Germany accounted for 23.5% of imports and 27.7% of exports; to the successor countries of the former Soviet Union - 16.9% of imports and 13.1% of exports. Other important trading partners in the early 1990s were Austria and Italy. Business relations with the USA developed, although the volume of trade was not so significant (2.9% of imports and 3.2% of exports).
In 1995, Hungary's total foreign trade was $28 billion. Exports reached $13 billion and imports $15 billion. iron and steel. The main imports are oil and oil products, natural gas, textiles and textile products, iron and steel, machinery, vehicles and spare parts for them.
Until the early 1970s, exports and imports were balanced. However, during the 1970s, import costs, especially oil, grew much faster than export earnings. Already in 1981, Hungary had to export 25% more goods to cover the volume of imports. The result was a serious trade deficit, which was covered by foreign loans. They were obtained almost entirely from Western banks and the International Monetary Fund, which led to an increase in Hungary's debt from less than $1 million in 1970 to $25.5 billion in 1997.
Tourism. In the 1950s, most tourists came from other countries of the Soviet bloc, but in the 1960s, Hungary began to encourage the arrival of tourists from Western countries. The number of such tourists increased from 244,000 in 1960 to 37.6 million in 1990 and to 40 million in 1996.
Hungary is the eighth most attractive country in the world. Hungary has a number of resorts that are equipped with modern physiotherapy facilities, and Lake Balaton, with its hotels and a wide range of recreational facilities, enjoys the greatest attention of tourists. The largest number of tourists come from Romania (mainly because there is a significant ethnic Hungarian minority), Germany, Austria, Yugoslavia and the republics of the former Yugoslavia. The number of tourists from America reached 390,000 in 1996. In 1996 and 1997, annual tourism revenues were $2.2 billion and $2.6 billion, respectively.
Currency and banking. monetary unit is a forint. Until 1976, the forint had several parallel exchange rates. One rate was set for "hard" currencies that could be used to purchase goods in the West; this was the so-called "foreign" exchange rate. The non-commercial rate was used for tourism and money transfers from abroad, while the commercial rate was used in foreign trade and accounted for half of the non-commercial rate. In 1976 the foreign exchange rate was abolished, and in 1981 the non-commercial and commercial rates were merged.
In the mid-1990s, most of Hungary's large banks were state-owned. National Bank occupies a central place in the management of the Hungarian economy. In addition to their own banking functions - issuing money and establishing interest rate, he manages the commercial banking business, accepts deposits, provides loans to corporations and cooperatives for investment and working capital, and deals with foreign trade transactions. Many banks accept major credit cards, but most consumer transactions in Hungary are done with cash. Hungary's foreign exchange reserve in 1998 was $8.8 billion.
Public finances. The state budget still has a predominant influence on the economy. In 1998, central government spending was 56% of the official gross national product (GNP). The budget deficit in 1998 was 2.9% of GNP, falling sharply to this figure (from 8.4%) in 1994. One of the main goals of the Bokrosh program is the elimination of the budget deficit.
The largest part of government spending, about 40% in 1997, goes to subsidies to budget organizations. Approximately 24% is allocated to social insurance and relief programs, 27% to debt service and interest payments, and 8.4% is spent on subsidies to state enterprises, agriculture, and consumer price support. Tax revenues are approximately 14% from the income tax of state and cooperative enterprises, 37.4% from taxes on individual consumption (additional taxation of luxury goods, excise duties), 18.2% from family payments (taxation of personal property, social insurance, etc. .d.), 13.9% of payments budget organizations, 9% of proceeds from the payment of capital debt and interest on public debt and 7.5% of taxes on privatization.