1. The structure of economy in Hungary

2. Sectors of the Hungarian economy
The private sector accounts for over 80 % of the economy.
Industry accounts for 33 % of GDP with primary
industries including mining, metallurgy, construction
materials, processed foods, textiles, chemicals (especially
pharmaceuticals), and motor vehicles.
Services account for 61% of GDP and agriculture just
5%.

3. Employment The roots of low acitivity in employment originate from:
the ageing society
the pension system
there was a decline after the full employment of the socialist era in the early 1990s

4. Increasing unemployment rates in the last five years
Hungary's labour force participation rate of 57% is one of the lowest in the Organization for Economic Cooperation and Development (OECD).

5. Economic development
After the dynamic growth until the end of the 90s, the economic growth slowed down.
In the first half of this decade the average growth rate fluctuated between 3-4 % due to the economic depression of world economy.
The accession to the EU had a positive effect on the performance of the country in 2004.

6. The Hungarian GDP between 2003-2007
Since 2006 the GDP has decreased demonstrating the lowest growth by 1.3 % in 2007.
→ consequence of the two packages of restrictions introduced by the government in 2006 and 2007 %
2003
2004
2005
2006
2007
Growth of GDP
3.4
4.6
4.1
3.9
1.3

7. Foreign trade in Hungary
Foreign trade is vital for the country, as Hungary is an
extremely open economy - the degree of openness (i.e. the share
of exports in the GDP) is around 65%.
Its central location makes the country a useful bridgehead for
transit trade between East and West.
Hungary imports raw materials and semi-finished products and
exports finished products.
The dynamic growth of exports in the past decade was mainly
due to the settlement of multinational companies in Hungary.
Over 70 percent of the country’s exports are produced by partly
or fully foreign-owned companies.
Almost three quarters of Hungary’s exports go to the EU and
more than one third to Germany.
The EU supplies 65% of Hungary’s imports.

8. Trading partners Export partners % of total Import partners Germany
29.5
27.1
Italy
5.6
Russia
8.2
France
5.0
China
6.9
Austria
6.2
the UK
4.5
4.7
Romania
4.2
4.6
Poland
4.1
the Netherlands
4.3

9. Foreign trade in figures
Major exports
% of total
Major imports
Machinery and equipment
62.4
Machinery and equipment 
52.2
Other manufactures
26.7
32.3
Food, beverages and tobacco
6.2
4.2
Fuels and electricity
2.9
9.6
Raw materials
1.9
1.7

10. Downward trend in inflation rate
Due to the global economic situation the trend came to a halt.
The annual inflation rate is expected to fall below two percent in 2009 well under the bank's 3 percent medium-term target.
The growth of the economy has slowed down significantly and we can not see the end of the tunnel.

11. The fulfilment of the Maastricht criteria
Hungary, as a member state of the European Union may seek to adopt the common European currency, the Euro. To achieve this, Hungary would need to fulfil the Maastricht criteria.
Maastricht criteria
Hungary (2008)
Inflation rate
max. 3.2 %
3.1 %
Annual government deficit to GDP
max. 3 %
4 %
Gross government debt to GDP
max. 60 %
66.5 %
Interest rate
max. 6.5 %
6.9 %

12. Thank you for your attention.