COUNTRYAAH, Hungary has undergone a development from central
management of the economy to the current market economy
situation. From 1968, the central government of the economy
was replaced by a system based on decentralization, with the
development of a socialist market economy as a goal. State
planning and "market development" should be harmonized. The
reforms led to a rapid improvement in living standards.
During the 1980s-1990s, further changes were introduced to
further develop a private business sector.
Hungary has experienced strong economic growth in recent
years (2006) and joined the EU in 2004. The private sector
plays an important role in the country's economy and there
is great interest in foreign investment in Hungary.
Hungary has long traditions as an agricultural country,
but in the post-World War II period it was characterized by
a transition to industry and service industries. In 2006,
31.2% of the workforce was employed in industry and mining,
65.1% in service industries and 3.7% in agriculture.
Agricultural employment has been sharply reduced since
the 1980s. Productivity has increased significantly, as has
the fertilizer consumption and the degree of mechanization.
The majority of the arable land is used for grain
cultivation, which mainly dominates east of the Danube. The
most important agricultural products are maize, wheat,
barley, potatoes, sunflower and sugar beets. Grapes are
grown in the old wine areas on the southern slopes of Tokaj,
Eger and Balaton, but most of the production comes from the
country between the Danube and Tisza.
There is considerable animal husbandry, especially
strophe and pigs. Chickens, geese, ducks and poultry provide
significant export revenue.
Only 16% of the area is forest. Forestry is mostly run in
the mountain regions and contributes with approx. 4
/ 5 of the country's annual needs. The rest must
Fishing takes place in rivers and ponds. The ponds, which
make up 0.3% of the total area, are the most important.
With the exception of bauxite, Hungary has modest
deposits of minerals. Lignite and lignite are recovered. In
particular, quantities of lignite are extracted in the "coal
axis", which extends diagonally through Hungary, from
Balaton to Sajódalen. Despite some petroleum production,
large quantities of crude oil and natural gas must be
In 2015, the production of electrical energy was 30 TWh,
of which just over 50 per cent came from nuclear power
plants, about 20 per cent from coal power plants and 15 per
cent from gas power plants. In addition, the country
imported 14 TWh (net), mainly from Slovakia and Ukraine. The
final consumption was 37 TWh, giving an annual per capita
consumption of 3750 kWh. The government plans to increase
its share of nuclear power to around 60 per cent.
After World War II, the heavy industry was prioritized in
Hungary, as in the other Eastern European countries.
Eventually, however, the country has developed an industrial
breadth with, among other things, far greater emphasis on
the production of consumer goods. Particularly since 1976,
emphasis has been placed on modernizing the industry. In
2006, the industry (including mining) contributed approx.
31% of GDP.
Nearly half of industrial employment is located in the
The rules of entry and exit were liberalized in 1964-65,
which resulted in an escalation of tourism, which has become
a significant source of foreign currency. Budapest, Balaton
and the many hot springs attract numerous visitors.
Germany is the main trading partner. Other important
countries for export are Austria and Italy. Main export
products are machinery, transport equipment, chemicals,
petroleum products and foodstuffs. The main import goods are
machinery, transport equipment, crude oil, natural gas,
petroleum products and foodstuffs. Imports come mainly from
Germany, Russia, China, Austria, France and the Netherlands.
Transport and Communications
A dense railway network radiates from Budapest. The line
length was 2006 7937 km. The road network is approx. 159 570
km. The state airline Malév has regular flights to most
European countries. Hungary has 1622 km of inland waterways,
with the Danube and Tisza rivers as the most important.
Budapest is the main port. The country's largest airport is
Férihegy Airport near Budapest.