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HUNGARY
                                                GEOGRAPHY
Geography - note: landlocked; strategic location astride main land routes between Western Europe and Balkan Peninsula as well as between Ukraine and Mediterranean basin.

Area:
total: 93,030 sq km
land: 92,340 sq km
water: 690 sq km

Area - comparative: slightly smaller than Indiana

Coastline: 0 km (landlocked)

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

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

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

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.


                                                People
Population: 10,232,404 (July 1997 est.)

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/1,000 population (1997 est.)

Death rate: 13.67 deaths/1,000 population (1997 est.)

Infant mortality rate: 10 deaths/1,000 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.)

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

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

Languages: Hungarian 98.2%, other 1.8%

Literacy:
definition: age 15 and over can read and write
total population: 99%
male: 99%
female : 98% (1980 est.)


                                           GOVERNMENT
National capital: Budapest

Independence: 1001 (unification by King Stephen I)

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.

Suffrage: 18 years of age; universal

Political parties and leaders: Hungarian Democratic Forum or MDF [Sandor LEZSAK, chairman]; Independent Smallholders or FKgP [Jozsef TORGYAN, president]; Hungarian Socialist Party or MSzP [Gyula HORN, president];
Christian Democratic People's Party or KDNP [Gyorgy GICZY, president]; Federation of Young Democrats or FiDeSz [Viktor ORBAN, chairman]; Alliance of Free Democrats or SzDSz [Gabor KUNCZE, chairman]; Hungarian Democratic People's Party or MDNP [Ivan SZABO, chairman]  note: the Hungarian Socialist (Communist) Workers' Party or MSzMP renounced Communism and became the Hungarian Socialist Party or MSzP in October 1989; there is still a small MMP (Communist Party); the MDNP was formed in March 1996 by breakaway members of the Hungarian Democratic Forum


                                                ECONOMY
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.

GDP - real growth rate: 0.5% (1996 est.)

GDP - composition by sector:
agriculture: 7.3%
industry : 31.9%
services: 60.8% (1994)

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

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.)

Economic aid:
recipient: ODA, $136 million (1993)
note : assistance received from OECD countries and international organizations, $3,700 million (1990-93)


                                             Military
Military manpower - availability:
males age 15-49: 2,631,781 (1997 est.)

Military manpower - fit for military service:
males : 2,099,109 (1997 est.)

Military expenditures - dollar figure: $550 million (1996)

Military expenditures - percent of GDP: 1.5% (1996)

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