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 and is now being considered a possible future member of the European Union.

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: 10,186,372 (July 1999 est.)
Growth rate: -0.2% (1999 est.)
Below poverty line: 25.3% (1993 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: 17% (male 908,434; female 865,621)
15-64 years: 68% (male 3,406,512; female 3,524,260)
65 years and over: 15% (male 552,337; female 929,208) (1999 est.)

Population growth rate: -0.2% (1999 est.)

Birth rate: 10.8 births/1000 population (1999 est.)

Death rate: 13.29 deaths/1000 population (1999 est.)

Net migration rate: 0.5 migrant(s)/1000 population (1999 est.)

Environment
Current issues: the approximation of Hungary's standards in waste management, energy efficiency, and air, soil, and water pollution with environmental requirements for EU accession will require large investments, estimated by the Government of Hungary at $4 billion over six years; the 1997 budget allocated $9.7 million for this purpose; the 1998 budget allocated $11.3 million; the Central Environmental Fund, which collects monies from product charges, environmental fines, and mining taxes, provided approximately $76.2 million in 1997 and is expected to provide $109.5 million in 1998
International agreements party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Sulphur 85, Air Pollution-Volatile Organic Compounds, Antarctic Treaty, Biodiversity, Climate Change, Endangered Species, Environmental Modification, Hazardous Wastes, Marine Dumping, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Wetlands
International agreements signed but not ratified: Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulphur 94, Antarctic-Environmental Protocol, Law of the Sea

Sex ratio
At birth: 1.05 male(s)/female
Under 15 years: 1.05 male(s)/female
15-64 years: 0.97 male(s)/female
65 years and over: 0.59 male(s)/female
Total population: 0.92 male(s)/female (1999 est.)

Infant mortality rate: 9.46 deaths/1000 live births (1999 est.)

Life expectancy at birth
Total population: 71.18 years
Male: 66.85 years
Female: 75.74 years (1999 est.)

Total fertility rate: 1.45 children born/woman (1999 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, 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; 1997 amendment streamlined the judicial system

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 Viktor ORBAN (since 6 July 1998)
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 reelected president; a total of 335 votes were cast by the National Assembly, Arpad GONCZ received 259; Viktor ORBAN 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 10 and 24 May 1998 (next to be held May/June 2002)
Election results: percent of vote by party (5% or more of the vote required for parliamentary representation in the first round)_MSZP 32.0%, FIDESZ 28.2%, FKGP 13.8%, SZDSZ 7.9%, MIEP 5.5%, MMP 4.1%, MDF 2.8%, KDNP 2.3%, MDNP 1.5%; seats by party_MSZP 134, FIDESZ 148, FKGP 48, SZDSZ 24, MDF 17, MIEP 14, independent 1; note_the MDF won 17 single-member district seats

Judicial branch: Constitutional Court, judges are elected by the National Assembly for a nine-year term

International organization participation: Australia Group, BIS, CCC, CE, CEI, CERN, EAPC, EBRD, ECE, EU (applicant), FAO, G- 9, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IEA, IFC, IFRCS, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, IOC, IOM, ISO, ITU, MONUA, MTCR, NAM (guest), NEA, NSG, OAS (observer), OECD, OPCW, OSCE, PCA, PFP, UN, 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 Geza JESZENSZKY
In the us chancery: 3,910 Shoemaker Street NW, Washington, DC 20,008
In the us telephone: [1] (202) 966-7,726
In the us FAX: [1] (202) 686-6,412
In the us consulates general: Los Angeles and New York
From the us chief of mission: Ambassador Peter F. TUFO
From the us embassy: V. 1054 Szabadsag Ter 12, Budapest
From the us mailing address: pouch:American Embassy Budapest, Department of State, Washington, DC 20,521-5,270
From the us telephone: [36] (1) 267-4,400, 269-9,331, 269-9,339 (after hours)
From the us FAX: [36] (1) 269-9,326

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

Economy overview: 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 government finance reform, and the reform of education at all levels. Foreign investment has totaled more than $17 billion through 1998. In recognition of Hungary's improved macroeconomic situation, all major credit-rating agencies listed the country's foreign currency debt issuances as investment grade in 1996. The current IMF stand-by arrangement expired in February 1998, and Budapest and the IMF agree that there is no need to renew it. The OECD welcomed Hungary as a member in May 1996, and in December 1997 the EU invited Hungary to begin the accession process. Forecasters expect 4%-5% growth in 1999.

Real gdp growth rate: 5% (1998 est.)

Real gdp per capita: purchasing power parity: $7,400 (1998 est.)

Gdp composition by sector of origin
Agriculture: 3%
Industry: 30.3%
Services: 66.7% (1996)

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: 11.1% (1997 est.)

Labor force: 4.2 million (1997)
By occupation services: 65%
By occupation industry: 26.7%
By occupation agriculture: 8.3% (1996)

Unemployment rate: 10.8% (1997)

Population below poverty line: 25.3% (1993 est.)

Budget
Revenues: $11.2 billion
Expenditures: $13.2 billion, including capital expenditures of $N/A (1998 est.)

Fiscal year: calendar year

Exports: $20.7 billion (f.o.b., 1998)
Commodities: machinery and equipment 51.9%, other manufactures 32.7%, agriculture and food products 10.5%, raw materials 2.9%, fuels and electricity 1.9% (1998)
Partners: Germany 37.3%, Austria 11.4%, Italy 6.1%, Russia 5.0% (1997)

Imports: $22.9 billion (f.o.b., 1998)
Commodities: machinery and equipment 46.5%, other manufactures 40.2%, fuels and electricity 6.6%, agricultural and food products 3.7%, raw materials 3.0% (1998)
Partners: Germany 26.7%, Austria 10.5%, Italy 9.5%, Russia 7.4% (1997)

Debt external: $22.1 billion (1997)

Exchange rates: forints per US$1_215.960 (January 1999), 214.402 (1998), 186.789 (1997), 152.647 (1996), 125.681 (1995),105.160 (1994)

Electricity
Production: 33.162 billion kWh (1996)
Production by source fossil fuel: 58.76%
Production by source hydro: 0.62%
Production by source nuclear: 40.62%
Production by source other: 0% (1996)
Consumption: 35.362 billion kWh (1996)
Exports: 2.2 billion kWh (1996)
Imports: 4.4 billion kWh (1996)

Telephones: 2.16 million (267,000 cellular telephone subscribers) (1996)

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 1990s); 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 telephone lines
Domestic: microwave radio relay
International: satellite earth stations_1 Intelsat and 1 Intersputnik (Atlantic Ocean region)

Military expenditures
Dollar figure: $645 million (1997)
Percent of gdp: 1.4% (1997)

Airports: 25 (1998 est.)
With paved runways total: 15
With paved runways over 3047 m: 2
With paved runways 2438 to 3047 m: 8
With paved runways 15-24 to 2437 m: 3
With paved runways 914 to 1523 m: 1
With paved runways under 914 m: 1 (1998 est.)
With unpaved runways total: 10
With unpaved runways 2438 to 3047 m: 3
With unpaved runways 15-24 to 2437 m: 4
With unpaved runways 914 to 1523 m: 3 (1998 est.)

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

Railways
Total: 7,606 km
Broad gauge: 36 km 1.524-m gauge
Standard gauge: 7,394 km 1.435-m gauge (2,207 km electrified; 1,236 km double track)
Narrow gauge: 176 km 0.760-m gauge (1996)
Note: Hungary and Austria jointly manage the cross-border standard-gauge railway between Gyor, Sopron, Ebenfurt (Gyor-Sopron-Ebenfurti Vasut Rt) a distance of about 101 km in Hungary and 65 km in Austria

Waterways: 1,622 km (1988)

Merchant marine: total:3 cargo ships (1,000 GRT or over) totaling 16,210 GRT/19,810 DWT (1998 est.)

Disputes international: ongoing Gabcikovo Dam dispute with Slovakia is before the International Court of Justice

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