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. 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 government austerity measures, resulted in an economic contraction of 6.8% in 2009. In 2010 the new government implemented a number of changes including cutting business and personal income taxes, but imposed "crisis taxes" on financial institutions, energy and telecom companies, and retailers. The IMF/EU bail-out program lapsed at the end of the year and was replaced by Post Program Monitoring and Article IV Consultations on overall economic and fiscal processes. The economy began to recover in 2010 with a big boost from exports, especially to Germany, and achieved growth of approximately 1.4% in 2011. At the end of 2011 the government turned to the IMF and the EU to obtain a new loan for foreign currency debt and bond obligations in 2012 and beyond. Whether negotiations result in a loan depend on Hungary meeting EU and IMF requirements for ensuring the independence of monetary, judicial, and data privacy institutions. The EU also launched an Excessive Deficit Procedure and requested that the government outline measures to sustainably reduce the budget deficit to under 3% of GDP. Unemployment remained high, at nearly 11% in 2011. Ongoing economic weakness in Western Europe is likely to further constrain growth in 2012.

In 2011, the Government decided to redirect funds from the country's obligatory private pension scheme into state coffers in order to pay off government debt, effectively renationalizing the private pension system; the 2.9% deficit shown here does not include this change; including this change would result in a budget surplus of 3.6%; the EU launched an Excessive Deficit Procedure against Hungary in January 2012, because it expects the 2013 deficit to reach 3.7%; the primary criticism of Hungary's deficit reductions in 2011 and 2012 was that they were not achieved in a sustainable manner (2011 est.)

General government gross debt is defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year in the following categories of government liabilities: currency and deposits, securities other than shares excluding financial derivatives, and government, state government, local government, and social security funds.

$30.51 billion (31 December 2011 est.)

$31.8 billion (31 December 2010 est.)

$74.5 billion (31 December 2011 est.)

$68.78 billion (31 December 2010 est.)

$110.2 billion (31 December 2011 est.)

$104.8 billion (31 December 2010 est.)

$18.77 billion (31 December 2011 est.)

$27.71 billion (31 December 2010)

$28.29 billion (31 December 2009)

Wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, dairy products

Mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles

26.57 million bbl (1 January 2011 est.)

8.098 billion cu m (1 January 2011 est.)

Machinery and equipment 55.3%, other manufactures 30.6%, food products 7.4%, raw materials 3.2%, fuels and electricity 3.3% (2009 est.)

Germany 25.1%, Romania 5.7%, Austria 5.4%, Slovakia 5.4%, Italy 5%, France 4.8%, UK 4.6% (2010 est.)

Machinery and equipment 44.7%, other manufactures 41.3%, fuels and electricity 5.1%, food products, raw materials 6.7%

Germany 24.7%, Russia 8.6%, China 8.4%, Austria 6.2%, Slovakia 4.9%, Poland 4.7%, Netherlands 4.4%, Italy 4.3% (2010 est.)

$48.84 billion (31 December 2011 est.)

$44.99 billion (31 December 2010 est.)

$184.5 billion (31 December 2011 est.)

$178.9 billion (31 December 2010 est.)

$71.89 billion (31 December 2011 est.)

$69.46 billion (31 December 2010 est.)

$20.56 billion (31 December 2011 est.)

$19.59 billion (31 December 2010 est.)