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.
|Balance on goods||-2,018|
|Balance on services||2,163|
|Balance on income||-1,488|
|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|