Having scrapped central planning, the Hungarian government is engaged in stabilizing the economy and taming inflation. In 1992, exports had grown by 7.4%, but recession in export markets, western European protectionism, an appreciating forint, bankruptcies of firms producing one-third of exports, and drought caused Hungarian trade to slow down. In 1994, Hungary had a current account deficit of $4 billion, but it shrank to $2.5 billion in 1995, and to a further $1 billion in 2001. Export markets were weak in 2003, and were not expected to rebound until mid-2004. Strong private consumption growth was sustaining the growth of the economy in 2003, but the current account deficit was forecast at 5.4% of GDP in 2003/04.
The US Central Intelligence Agency (CIA) reports that in 2002 the purchasing power parity of Hungary's exports was $31.4 billion while imports totaled $33.9 billion resulting in a trade deficit of $2.5 billion.
The International Monetary Fund (IMF) reports that in 2001 Hungary had exports of goods totaling $28.1 billion and imports totaling $30.1 billion. The services credit totaled $7.71 billion and debit $5.55 billion. The following table summarizes Hungary's balance of payments as reported by the IMF for 2001 in millions of US dollars.
Current Account | -1,097 |
Balance on goods | -2,018 |
Balance on services | 2,163 |
Balance on income | -1,488 |
Current transfers | 245 |
Capital Account | 317 |
Financial Account | 617 |
Direct investment abroad | -337 |
Direct investment in Hungary | 2,440 |
Portfolio investment assets | -149 |
Portfolio investment liabilities | 1,526 |
Other investment assets | -3,430 |
Other investment liabilities | 446 |
Net Errors and Omissions | 79 |
Reserves and Related Items | 84 |
Comment about this article, ask questions, or add new information about this topic: