Background: After World War II Hungary became part of Soviet-dominated Eastern Europe, and its government and economy were refashioned on the communist model. Increased nationalist opposition, which culminated in the government's announcement of withdrawal from the Warsaw Pact in 1956, led to massive military intervention by Moscow and the swift crushing of the revolt. In the more open GORBACHEV years, Hungary led the movement to dissolve the Warsaw Pact and steadily moved toward multiparty democracy and a market-oriented economy. Following the collapse of the USSR in 1991, Hungary has developed close political and economic relations with western Europe.

Geographic coordinates: 47 00 N, 20 00 E

Map reference: Europe

Area
Total: 93,030 km²
Land: 92,340 km²
Water: 690 km²
Comparative: slightly smaller than Indiana

Land boundaries
Total: 2,009 km
Border countries: (6) Austria 366 km; , Croatia 329 km; , Romania 443 km; , Serbia and Montenegro 151 km; (all with Serbia), Slovakia 515 km; , Slovenia 102 km; , Ukraine 103 km

Coastline: 0 km (landlocked)

Maritime claims: none (landlocked)

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

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

Elevation
Extremes lowest point: Tisza River 78 m
Extremes highest point: Kekes 1,014 m

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

Land use
Arable land: 51%
Permanent crops: 2%
Permanent pastures: 13%
Forests and woodland: 19%
Other: 15% (1993 est.)

Irrigated land: 2,060 km² (1993 est.)

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

Population: 10,232,404 (July 1997 est.)
Growth rate: -0.25% (1997 est.)

Nationality
Noun: Hungarian(s)
Adjective: Hungarian

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

Languages: Hungarian 98.2%, other 1.8%

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

Age structure
0-14 years: 18% (male 924,864; female 881,728)
15-64 years: 68% (male 3,419,485; female 3,541,823)
65 years and over: 14% (male 549,091; female 915,413) (July 1997 est.)

Population growth rate: -0.25% (1997 est.)

Birth rate: 10.73 births/1000 population (1997 est.)

Death rate: 13.67 deaths/1000 population (1997 est.)

Net migration rate: 0.47 migrant(s)/1000 population (1997 est.)

Environment
Current issues: an early-1996 government study identified 179 areas that suffer from air pollution, 54 areas with polluted soil, and 32 areas with polluted underground water; the study estimated clean-up costs at $350 million, but the 1996 government budget allocated only about $7 million for this purpose

Sex ratio
At birth: 1.05 male(s)/female
Under 15 years: 1.05 male(s)/female
15-64 years: 0.96 male(s)/female
65 years and over: 0.6 male(s)/female
Total population: 0.92 male(s)/female (1997 est.)

Infant mortality rate: 10 deaths/1000 live births (1997 est.)

Life expectancy at birth
Total population: 70.48 years
Male: 66.06 years
Female: 75.13 years (1997 est.)

Total fertility rate: 1.47 children born/woman (1997 est.)

Literacy
Definition: age 15 and over can read and write
Total population: 99%
Male: 99%
Female: 98% (1980 est.)

Country name
Conventional long form: Republic of Hungary
Conventional short form: Hungary
Local long form: Magyar Koztarsasag
Local short form: Magyarorszag

Government type: republic

Capital: Budapest

Administrative divisions: 19 counties (megyek, singular - megye), 20 urban counties* (singular - megyei varos), 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, Veszprem*, Zala, Zalaegerszeg*

Independence: 1001 (unification by King Stephen I)

National holiday: St. Stephen's Day (National Day), 20 August (commemorates the coronation of King Stephen in 1000 AD)

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 since 2 May 1990)
Head of government: Prime Minister Gyula HORN (since 15 July 1994)
Cabinet: Council of Ministers elected by the National Assembly on the recommendation of the president
Elections: president elected by the National Assembly for a four-year term; election last held 19 June 1995 (next to be held NA 1999); prime minister elected by the National Assembly on the recommendation of the president
Election results: Arpad GONCZ elected president; a total of 335 votes were cast by the National Assembly, Arpad GONCZ received 259; Gyula HORN elected prime minister; percent of legislative vote NA

Legislative branch: unicameral National Assembly or Orszaggyules (386 seats; members are elected by popular vote under a system of proportional and direct representation to serve four-year terms)
Elections: last held on 8 and 29 May 1994 (next to be held May 1998)
Election results: percent of vote by party - NA; seats by party - MSzP 209, SzDSz 70, MDF 37, FKgP 26, KDNP 22, FiDeSz 20, other 2

Judicial branch: Constitutional Court, judges are elected by the National Assembly

International organization participation: Australia Group, BIS, CCC, CE, CEI, CERN, EBRD, ECE, EU (applicant), FAO, G- 9, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IFC, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, IOM, ISO, ITU, MINURSO, MTCR, NACC, NAM (guest), NSG, OAS (observer), OECD, OSCE, PCA, PFP, UN, UNAVEM III, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, UNIKOM, UNMIBH, UNOMIG, UNU, UPU, WEU (associate partner), WFTU, WHO, WIPO, WMO, WToO, WTrO, ZC

Diplomatic representation
In the us chief of mission: Ambassador Gyorgy BANLAKI
In the us chancery: 3,910 Shoemaker Street NW, Washington, DC 20,008
In the us telephone: [1] (202) 362-6,730
In the us FAX: [1] (202) 966-8,135
In the us consulates general: Los Angeles and New York
From the us chief of mission: Ambassador Donald M. BLINKEN
From the us embassy: V. Szabadsag Ter 12, Budapest
From the us mailing address: American Embassy Budapest, Department of State, Washington, DC 20,521-5,270
From the us telephone: [36] (1) 267-4,400, 269-9,331
From the us FAX: [36] (1) 269-9,326

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

Economy overview: 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, respectively. The situation improved sharply in 1995:an austerity program introduced in March reduced both deficits; and a renewed privatization effort later in the year resulted in more than $3 billion worth of sales of state firms to foreign investors - money used mostly to reduce Hungary's large foreign debt. Real GDP increased 2.9% in 1994 - following several years of steep decline - and about 1.5% in 1995 and only 0.5% in 1996. Unemployment reached 14% in early 1993 before gradually falling back to 11% in 1996. Inflation has oscillated; it reached 40% in mid-1991, dropped to 17% in early 1994, jumped back to 31% by mid-1995, and settled at 20% in 1996. Prospects for 1997 and 1998 are good compared with the situation earlier. Most forecasters expect 2% to 3% GDP growth in 1997 and slightly higher growth in 1998. Inflation and unemployment are edging down. With the government still committed to reform, both the budget and current account deficits are at IMF target levels - about 4% of GDP. Budapest also is making good progress in restructuring the pension, health, tax, education, and other systems as part of the effort to decrease the role of government. This dramatic shift in economic policy was rewarded in 1996 by the IMF, which finally signed the standby agreement Budapest had sought, and by the OECD, which welcomed Hungary as a member.

Real gdp growth rate: 0.5% (1996 est.)

Real gdp per capita: purchasing power parity - $7,500 (1996 est.)

Gdp composition by sector of origin
Agriculture: 7.3%
Industry: 31.9%
Services: 60.8% (1994)

Agriculture products: wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products

Industries: mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles

Industrial production growth rate: 2% (1996 est.)

Labor force
Total: 6.2 million (1996)
By occupation services: 58.7%
By occupation industry: 34.7%
By occupation agriculture: 6.6% (1996 est.)

Unemployment rate: 11% (1996 est.)

Budget
Revenues: $10.2 billion
Expenditures: $11 billion, including capital expenditures of $N/A (1995)

Fiscal year: calendar year

Exports
Total value: $14.2 billion (f.o.b., 1996)
Commodities: raw materials 39.5%, consumer goods 25.0%, agriculture and food products 21.8%, machinery and equipment 11.3%, fuels and electricity 2.4% (1995)
Partners: EU 63.3% (Germany 28.8%, Austria 10.0%), Eastern Europe 19.7%, Russia 10.7% (1995)

Imports
Total value: $16.8 billion (f.o.b., 1996)
Commodities: raw materials 42.3%, consumer goods 20.9%, machinery and equipment 20.1%, fuels and electricity 10.8%, agricultural and food products 5.9% (1995)
Partners: EU 61.6% (Germany 23.6%, Austria 11.9%), Eastern Europe 22.2%, Russia 14.7% (1995)

Debt external: $27.5 billion (1996 est.)

Exchange rates: forints per US$1 - 166.100 (January 1997), 152.647 (1996), 125.681 (1995),105.160 (1994), 91.933 (1993), 78.988 (1992)

Electricity
Capacity: 6.98 million kW (1994)
Production: 31.63 billion kWh (1994)
Consumption per capita: 3,200 kWh (1995 est.)

Telephones: 2.16 million (1 January 1996) - there are 21.1 per 100 inhabitants, 54.1 per 100 households; mobile telephone services are used by 267,000 subscribers

Telephone system: 14,213 telex lines; automatic telephone network based on microwave radio relay system; the average waiting time for telephones is expected to drop to one year by the end of 1997 (down from over 10 years in the early 1990's); note - the former state-owned telecommunications firm MATAV - now privatized and managed by a US/German consortium - has ambitious plans to upgrade the inadequate system, including a contract with the German firm Siemens and the Swedish firm Ericsson to provide 600,000 new phone lines during 1996-98
Domestic: microwave radio relay
International: satellite earth stations - 1 Intelsat and 1 Intersputnik (Atlantic Ocean Region)

Military expenditures
Dollar figure: $550 million (1996)
Percent of gdp: 1.5% (1996)

Airports: 78 (1994 est.)
With paved runways total: 14
With paved runways over 3047 m: 2
With paved runways 2438 to 3047 m: 7
With paved runways 15-24 to 2437 m: 4
With paved runways under 914 m: 1 (1994 est.)
With unpaved runways total: 64
With unpaved runways 2438 to 3047 m: 7
With unpaved runways 15-24 to 2437 m: 9
With unpaved runways 914 to 1523 m: 14
With unpaved runways under 914 m: 34 (1994 est.)

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

Railways
Total: 7,619 km
Broad gauge: 35 km 1.524-m gauge
Standard gauge: 7,408 km 1.435-m gauge (2,216 km electrified; 1,236 km double track)
Narrow gauge: 176 km 0.760-m gauge (1995)
Note: Hungry and Austria jointly manage the cross-border standard-gauge railway between Gyor, Sopron, Ebenfurti, and Vasut, a distance of about 100 km

Waterways: 1,622 km (1988)

Merchant marine: total:11 cargo ships (1,000 GRT or over) totaling 51,076 GRT/67,498 DWT (1996 est.)

Disputes international: Gabcikovo Dam dispute with Slovakia

Illicit drugs: major transshipment point for Southwest Asian heroin and cannabis and transit point for South American cocaine destined for Western Europe; limited producer of precursor chemicals, particularly for amphetamines and methamphetamines