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Hungary

Geography

Location: Central Europe, northwest of Romania

Map references: Ethnic Groups in Eastern Europe, Europe

Area:
total area: 93,030 sq km
land area: 92,340 sq km
comparative area: slightly smaller than Indiana

Land boundaries: total 1,989 km, Austria 366 km, Croatia 329 km, Romania 443 km, Serbia and Montenegro 151 km (all with Serbia), Slovakia 515 km, Slovenia 82 km, Ukraine 103 km

Coastline: 0 km (landlocked)

Maritime claims: none; landlocked

International disputes: Gabcikovo Dam dispute with Slovakia

Climate: temperate; cold, cloudy, humid winters; warm summers

Terrain: mostly flat to rolling plains; hills and low mountains on the Slovakian border

Natural resources: bauxite, coal, natural gas, fertile soils

Land use:
arable land: 50.7%
permanent crops: 6.1%
meadows and pastures: 12.6%
forest and woodland: 18.3%
other: 12.3%

Irrigated land: 1,750 sq km (1989)

Environment:
current issues: air pollution; industrial and municipal pollution of Lake Balaton
natural hazards: levees are common along many streams, but flooding occurs almost every year
international agreements: party to - Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Sulphur 85, Antarctic Treaty, Biodiversity, Climate Change, Endangered Species, Environmental Modification, Hazardous Wastes, Marine Dumping, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Wetlands; signed, but not ratified - Air Pollution-Sulphur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Law of the Sea

Note: landlocked; strategic location astride main land routes between Western Europe and Balkan Peninsula as well as between Ukraine and Mediterranean basin

People

Population: 10,318,838 (July 1995 est.)

Age structure:
0-14 years: 18% (female 918,281; male 958,027)
15-64 years: 68% (female 3,534,218; male 3,440,036)
65 years and over: 14% (female 914,221; male 554,055) (July 1995 est.)

Population growth rate: 0.02% (1995 est.)

Birth rate: 12.65 births/1,000 population (1995 est.)

Death rate: 12.44 deaths/1,000 population (1995 est.)

Net migration rate: 0 migrant(s)/1,000 population (1995 est.)

Infant mortality rate: 11.9 deaths/1,000 live births (1995 est.)

Life expectancy at birth:
total population: 71.9 years
male: 67.94 years
female: 76.06 years (1995 est.)

Total fertility rate: 1.82 children born/woman (1995 est.)

Nationality:
noun: Hungarian(s)
adjective: Hungarian

Ethnic divisions: Hungarian 89.9%, Gypsy 4%, German 2.6%, Serb 2%, Slovak 0.8%, Romanian 0.7%

Religions: Roman Catholic 67.5%, Calvinist 20%, Lutheran 5%, atheist and other 7.5%

Languages: Hungarian 98.2%, other 1.8%

Literacy: age 15 and over can read and write (1980)
total population: 99%
male: 99%
female: 98%

Labor force: 5.4 million
by occupation: services, trade, government, and other 44.8%, industry 29.7%, agriculture 16.1%, construction 7.0% (1991)

Government

Names:
conventional long form: Republic of Hungary
conventional short form: Hungary
local long form: Magyar Koztarsasag
local short form: Magyarorszag

Digraph: HU

Type: republic

Capital: Budapest

Administrative divisions: 38 counties (megyek, singular - megye) and 1 capital city* (fovaros); Bacs-Kiskun, Baranya, Bekes, Bekescsaba, Borsod-Abauj-Zemplen, Budapest*, Csongrad, Debrecen, Dunaujvaros, Eger, Fejer, Gyor, Gyor-Moson-Sopron, Hajdu-Bihar, Heves, Hodmezovasarhely, Jasz-Nagykun-Szolnok, Kaposvar, Kecskemet, Komarom-Esztergom, Miskolc, Nagykanizsa, Nograd, Nyiregyhaza, Pecs, Pest, Somogy, Sopron, Szabolcs-Szatmar-Bereg, Szeged, Szekesfehervar, Szolnok, Szombathely, Tatabanya, Tolna, Vas, Veszprem, Zala, Zalaegerszeg

Independence: 1001 (unification by King Stephen I)

National holiday: St. Stephen's Day (National Day), 20 August (commemorates the founding of Hungarian state circa 1000 A.D.)

Constitution: 18 August 1949, effective 20 August 1949, revised 19 April 1972; 18 October 1989 revision ensured legal rights for individuals and constitutional checks on the authority of the prime minister and also established the principle of parliamentary oversight

Legal system: in process of revision, moving toward rule of law based on Western model

Suffrage: 18 years of age; universal

Executive branch:
chief of state: President Arpad GONCZ (since 3 August 1990; previously interim president from 2 May 1990); election last held 3 August 1990 (next to be held NA 1995); results - President GONCZ elected by parliamentary vote; note - President GONCZ was elected by the National Assembly with a total of 295 votes out of 304 as interim President from 2 May 1990 until elected President
head of government: Prime Minister Gyula HORN (since 15 July 1994)
cabinet: Council of Ministers; elected by the National Assembly on recommendation of the president

Legislative branch: unicameral
National Assembly (Orszaggyules): elections last held on 8 and 29 May 1994 (next to be held spring 1998); results - percent of vote by party NA; seats - (386 total) MSzP 209, SzDSz 70, MDF 37, FKgP 26, KDNP 22, FiDeSz 20, other 2

Judicial branch: Constitutional Court

Political parties and leaders: Hungarian Democratic Forum (MDF), Lajos FUR, chairman; Independent Smallholders (FKgP), Jozsef TORGYAN, president; Hungarian Socialist Party (MSzP), Gyula HORN, president; Christian Democratic People's Party (KDNP), Dr. Lazlo SURJAN, president; Federation of Young Democrats (FiDeSz), Viktor ORBAN, chairman; Alliance of Free Democrats (SzDSz), Ivan PETO, chairman
note: the Hungarian Socialist (Communist) Workers' Party (MSzMP) renounced Communism and became the Hungarian Socialist Party (MSzP) in October 1989; there is still a small MMP

Member of: Australia Group, BIS, CCC, CE, CEI, CERN, EBRD, ECE, FAO, G- 9, GATT, IAEA, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, ILO, IMF, IMO, INTELSAT, INTERPOL, IOC, IOM, ISO, ITU, MTCR, NACC, NAM (guest), NSG, OAS (observer), OSCE, PCA, PFP, UN, UNAVEM II, UNCTAD, UNESCO, UNHCR, UNIDO, UNIKOM, UNOMIG, UNOMOZ, UNOMUR, UNU, UPU, WEU (associate partner), WFTU, WHO, WIPO, WMO, WTO, ZC

Diplomatic representation in US:
chief of mission: Ambassador Gyorgy BANLAKI (since 27 October 1994)
chancery: 3910 Shoemaker Street NW, Washington, DC 20008
telephone: [1] (202) 362-6730
FAX: [1] (202) 966-8135
consulate(s) general: Los Angeles and New York

US diplomatic representation:
chief of mission: Ambassador Donald M. BLINKEN
embassy: V. Szabadsag Ter 12, Budapest
mailing address: Am Embassy, Unit 1320, Budapest; APO AE 09213-1320
telephone: [36] (1) 112-6450
FAX: [36] (1) 132-8934

Flag: three equal horizontal bands of red (top), white, and green

Economy

Overview: Since 1989 Hungary has been a leader in the transition from a socialist command economy to a market economy - thanks in large part to its initial economic reforms during the Communist era. The private sector now accounts for about 55% of GDP. Nonetheless, the transformation is proving difficult, and many citizens say life was better under the old system. On the bright side, the four-year decline in output finally ended in 1994, as real GDP increased an estimated 3%. This growth helped reduce unemployment to just over 10% by yearend, down from a peak of 13%. However, no progress was made against inflation, which remained stuck at about 20%, and the already-large current account deficit in the balance of payments actually got worse, reaching almost $4 billion. Underlying Hungary's other economic problems is the large budget deficit, which probably exceeded 7% of GDP in 1994, despite some late-year budget cutting by the new leftist government. In 1995 the government has pledged to accelerate privatization and lower the budget deficit to 5.5% of GDP. It believes this fiscal tightening will reduce the current account deficit to $2.5 billion but at the cost of holding economic growth to only 1%.

National product: GDP - purchasing power parity - $58.8 billion (1994 est.)

National product real growth rate: 3% (1994 est.)

National product per capita: $5,700 (1994 est.)

Inflation rate (consumer prices): 21% (1994)

Unemployment rate: 10.4% (yearend 1994)

Budget:
revenues: $11.3 billion
expenditures: $14.2 billion, including capital expenditures of $NA (1994)

Exports: $10.3 billion (f.o.b., 1994 est.)
commodities: raw materials and semi-finished goods 30.0%, machinery and transport equipment 20.1%, consumer goods 25.2%, food and agriculture 21.4%, fuels and energy 3.4% (1993)
partners: Germany 25.3%, Italy 8.3%, Austria 10.5%, the FSU 14.0%, US 4.3% (1993)

Imports: $14.2 billion (f.o.b., 1994 est.)
commodities: fuels and energy 12.6%, raw materials and semi-finished goods 27.3%, machinery and transport equipment 33.0%, consumer goods 21.2%, food and agriculture 5.9% (1993)
partners: Germany 21.5%, Italy 6.1%, Austria 11.8%, the FSU 20.9%, US 4.3% (1993); note - about one-fourth of the imports from the FSU were MiGs delivered as a debt payment

External debt: $27 billion (September 1994)

Industrial production: growth rate 7% (1994 est.)

Electricity:
capacity: 6,740,000 kW
production: 31 billion kWh
consumption per capita: 3,012 kWh (1993)

Industries: mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), buses, automobiles

Agriculture: including forestry, accounts for 15% of GDP and 16% of employment; highly diversified crop and livestock farming; principal crops - wheat, corn, sunflowers, potatoes, sugar beets; livestock - hogs, cattle, poultry, dairy products; self-sufficient in food output

Illicit drugs: transshipment point for Southeast Asia heroin and South American cocaine destined for Western Europe; limited producer of precursor chemicals

Economic aid:
recipient: assistance pledged by OECD countries since 1989 about $9 billion

Currency: 1 forint (Ft) = 100 filler

Exchange rates: forints per US$1 - 112 (January 1995), 105.16 (1994), 91.93 (1993), 78.99 (1992), 74.74 (1991), 63.21 (1990), 59.07 (1989)

Fiscal year: calendar year

Transportation

Railroads:
total: 7,785 km
broad gauge: 35 km 1.520-m gauge
standard gauge: 7,574 km 1.435-m gauge (2,277 km electrified; 1,236 km double track)
narrow gauge: 176 km mostly 0.760-m gauge (1994)

Highways:
total: 158,711 km
paved: 69,992 km (441 km expressways)
unpaved: 88,719 km (1992)

Inland waterways: 1,622 km (1988)

Pipelines: crude oil 1,204 km; natural gas 4,387 km (1991)

Ports: Budapest, Dunaujvaros

Merchant marine:
total: 10 cargo ships (1,000 GRT or over) totaling 46,121 GRT/61,613 DWT

Airports:
total: 78
with paved runways over 3,047 m: 2
with paved runways 2,438 to 3,047 m: 7
with paved runways 1,524 to 2,437 m: 4
with paved runways under 914 m: 1
with unpaved runways 2,438 to 3,047 m: 7
with unpaved runways 1,524 to 2,438 m: 9
with unpaved runways 914 to 1,523 m: 14
with unpaved runways under 914 m: 34

Communications

Telephone system: 1,520,000 phones; 14.7 telephones/100 inhabitants (1993); 14,213 telex lines; automatic telephone network based on microwave radio relay system; 608,000 telephones on order; 12-15 year wait for a telephone; 49% of all phones are in Budapest (1991)
local: NA
intercity: microwave radio relay
international: 1 INTELSAT and Intersputnik earth stations

Radio:
broadcast stations: AM 32, FM 15, shortwave 0
radios: NA

Television:
broadcast stations: 41 (Russian repeaters 8)
televisions: NA

Defense Forces

Branches: Ground Forces, Air and Air Defense Forces, Border Guard, Territorial Defense

Manpower availability: males age 15-49 2,639,860; males fit for military service 2,105,632; males reach military age (18) annually 86,298 (1995 est.)

Defense expenditures: 66.5 billion forints, NA% of GDP (1994 est.); note - conversion of defense expenditures into US dollars using the prevailing exchange rate could produce misleading results

Copyright © 1996, The Emerging Markets Companion, Inc.The information herein was obtained from sources which The Emerging Markets Companion, Inc. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.