ARCHIVE // HU // TIME-SERIES
Economic overview
Hungary — 36 years of data
Historical Values
| Year | Value |
|---|---|
| 1990 | Hungary's postwar Communist government spurred the movement from a predominantly agricultural to an industrialized economy. The share of the labor force in agriculture dropped from over 50% in 1950 to under 20% in 1989. Agriculture nevertheless remains an important sector, providing sizable export earnings and meeting domestic food needs. Industry accounts for about 40% of GNP and 30% of employment. Nearly three-fourths of foreign trade is with the USSR and Eastern Europe. Low rates of growth r |
| 1991 | Agriculture is an important sector, providing sizable export earnings and meeting domestic food needs. Industry accounts for about 40% of GNP and 30% of employment. About 40% of Hungary's foreign trade is with the USSR and Eastern Europe and a third is with the EC. Low rates of growth reflect the inability of the Soviet-style economy to modernize capital plant and motivate workers. GNP declined by 1% in 1989 and by an estimated 6% in 1990. Since 1985 external debt has more than doubled, to over |
| 1992 | Hungary is in the midst of a difficult transition between a command and a market economy. Agriculture is an important sector, providing sizable export earnings and meeting domestic food needs. Industry accounts for about 40% of GDP and 30% of employment. Hungary claims that less than 20% of foreign trade is now with former CEMA countries, while about 70% is with OECD members. Hungary's economic reform programs during the Communist era gave it a head start in creating a market economy and attract |
| 1993 | Hungary is in the midst of a difficult transition from a command to a market economy. Agriculture is an important sector, providing sizable export earnings and meeting domestic food needs. Industry accounts for about 40% of GDP and 30% of employment. Hungary claims that less than 25% of foreign trade is now with former CEMA countries, while about 70% is with OECD members. Hungary's economic reform programs during the Communist era gave it a head start in creating a market economy and attracting |
| 1994 | Hungary is still in the midst of a difficult transition from a command to a market economy. Its economic reforms during the Communist era gave it a head start on this process, particularly in terms of attracting foreign investors - Hungary has accounted for about half of all foreign direct investment in Eastern Europe since 1989. Nonetheless, the economy continued to contract in 1993, with real GDP falling perhaps 1%. Although the privatization process has lagged, in December 1993 Hungary carrie |
| 1995 | 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 une |
| 1996 | Hungary, probably the most Western-oriented economy in East Europe before the transition to a market system began in 1990, made good progress in the initial years of transition. The reform process slowed in 1993-94, however, in part because of the May 1994 elections and the resulting change in government. By 1994 the privatization of state firms had ground to a halt, while both the budget and current account deficits soared to unsustainable levels - about 8% and 10% of GDP, respectively. The sit |
| 1997 | Hungary probably had the most Western-oriented economy in East Europe before the transition to a market system began in 1990, and Budapest made good progress in the initial years of transition. The reform process slowed in 1993-94, however, in part because of the May 1994 elections and the resulting change in government. By 1994 the privatization of state firms had ground to a halt, while both the budget and current account deficits soared to unsustainable levels - about 8% and 10% of GDP, respe |
| 1998 | Hungary has consolidated its March 1995 stabilization program and undergone enough restructuring to become an established market economy. The country appears to have entered a period of sustainable growth, gradually falling inflation, and stable external balances. The government's main economic priorities are to complete structural reforms, particularly the implementation of the 1997 pension reform act (the first in the region), taxation reform, and planning for comprehensive health care, local |
| 1999 | Hungary has consolidated its March 1995 stabilization program and undergone enough restructuring to become an established market economy. The country appears to have entered a period of sustainable growth, gradually falling inflation, and stable external balances. The government's main economic priorities are to complete structural reforms, particularly the implementation of the 1997 pension reform act (the first in the region), taxation reform, and planning for comprehensive health care, local |
| 2000 | Hungary continues to demonstrate strong economic growth and to work toward accession to the European Union. Over 85% of the economy has been privatized. Foreign ownership of and investment in Hungarian firms has been widespread with cumulative foreign direct investment $21 billion by 1999. Hungarian sovereign debt is now rated investment grade. GDP growth of 4% in 1999 will likely be matched or even exceeded in 2000. Inflation, while diminished, is still high at 10%. Economic reform measures inc |
| 2001 | Hungary continues to demonstrate strong economic growth and to work toward accession to the European Union. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms is widespread, with cumulative foreign direct investment totaling $23 billion by 2000. Hungarian sovereign debt was upgraded in 2000 to the second-highest rating among all the Central European transition economies. Inflation - a top economic concern in 2000 - is still high at almost 10%, |
| 2002 | Hungary continues to demonstrate strong economic growth and to work toward accession to the European Union. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms is widespread, with cumulative foreign direct investment totaling more than $23 billion since 1989. Hungarian sovereign debt was upgraded in 2000 to the second-highest rating among all the Central European transition economies. Inflation and unemployment - both priority concerns in 2001 |
| 2003 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income one-half that of the Big Four European nations. Hungary continues to demonstrate strong economic growth and to work toward accession to the European Union in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $23 billion since 1989. Hungarian sovereign debt |
| 2004 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income one-half that of the Big Four European nations. Hungary continues to demonstrate strong economic growth and joined the European Union in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $23 billion since 1989. Hungarian sovereign debt was upgraded in 2000 |
| 2005 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income one-half that of the Big Four European nations. Hungary continues to demonstrate strong economic growth and acceded to the European Union in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $23 billion since 1989. Hungarian sovereign debt was upgraded in |
| 2006 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income about 60% of the EU-25 average. Hungary continues to demonstrate strong economic growth and acceded to the EU in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $34 billion between 1990 and 2003. Several private sector analysts and sovereign ratings agen |
| 2007 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. Hungary continues to demonstrate strong economic growth and acceded to the EU in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $60 billion since 1989. Hungary issues investment-grade sovereign debt. Internat |
| 2008 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $60 billion since 1989. Hungary issues investment-grade sovereign debt. International observers, however, have expressed concerns over Hungary's fiscal and current ac |
| 2009 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms is widespread, with cumulative foreign direct investment totaling more than $200 billion since 1989. The government's IMF-mandated austerity measures, imposed since late 2006, have reduced the budget deficit from over 9% of GDP in 2006 to 3.3% |
| 2010 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment worth more than $70 billion. The government's austerity measures, imposed since late 2006, have reduced the budget deficit from over 9% of GDP in 2006 to 3.8% in 2010. Hungary's impendi |
| 2011 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment worth more than $70 billion. The government's austerity measures, imposed since late 2006, have reduced the budget deficit from over 9% of GDP in 2006 to 3.2% in 2010, with a target of |
| 2012 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-27 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment worth more than $70 billion. In late 2008, Hungary's impending inability to service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an IMF/EU/Wo |
| 2013 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-27 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment worth more than $70 billion. In late 2008, Hungary's impending inability to service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an IMF/EU/Wo |
| 2014 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-28 average. In late 2008, Hungary's impending inability to service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an IMF/EU/World Bank-arranged financial assistance package worth over $25 billion. The global economic downturn, declining exports, and low domestic consumption and fixed asset accumulation, dampened by gover |
| 2015 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-28 average. In late 2008, Hungary's impending inability to service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an IMF/EU/World Bank-arranged financial assistance package worth over $25 billion. The global economic downturn, declining exports, and low domestic consumption and investment, dampened by government austerit |
| 2016 | Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-28 average. | In late 2008, Hungary's impending inability to service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an IMF/EU/World Bank-arranged financial assistance package worth over $25 billion. The global economic downturn, declining exports, and low domestic consumption and investment, dampened by government auster |
| 2017 | Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income nearly two-thirds that of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth. | The economy is largely driven by exports, making it vulnerable to external market shocks. Following the fal |
| 2018 | Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income approximately two-thirds of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth. Following the fall of communism in 1990, Hungary experienced a drop-off in exports and financial assistance |
| 2019 | Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income approximately two thirds of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth. Following the fall of communism in 1990, Hungary experienced a drop-off in exports and financial assistance |
| 2020 | Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income approximately two thirds of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth. Following the fall of communism in 1990, Hungary experienced a drop-off in exports and financial assistance |
| 2021 | Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income approximately two thirds of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth. Following the fall of communism in 1990, Hungary experienced a drop-off in exports and financial assistance |
| 2022 | Hungary has transitioned from a centrally planned to a market-driven economy with a per capita income approximately two thirds of the EU-28 average; however, in recent years the government has become more involved in managing the economy. Budapest has implemented unorthodox economic policies to boost household consumption and has relied on EU-funded development projects to generate growth. Following the fall of communism in 1990, Hungary experienced a drop-off in exports and financial assistance |
| 2023 | high-income EU and OECD economy; decreasing government spending; increasing judicial independence concerns; flat income taxation; increasingly dependent on energy imports; strong tourism and automotive manufacturing |
| 2024 | high-income EU and OECD economy; tightening fiscal policy in response to budget deficit; delayed EU cohesion fund disbursement due to judicial independence concerns; high inflation and low consumer confidence; seeking alternatives to dependence on Russian natural gas |
| 2025 | high-income EU and OECD economy; modest recovery from 2024 recession driven by private consumption and moderated inflation; challenges include high fiscal deficits, frozen access to EU funds, and risks from export reliance; implementing tax exemptions, price controls, and mortgage interest caps ahead of 2026 elections |