GENERAL:

Hungary was part of the polyglot Austro-Hungarian Empire, which collapsed during World War I. The country fell under Communist rule following World War II.

In 1956, a revolt and announced withdrawal from the Warsaw Pact were met with a massive military intervention by Moscow. Under the leadership of Janos KADAR in 1968, Hungary began liberalizing its economy, introducing so-called "Goulash Communism."

Hungary held its first multiparty elections in 1990 and initiated a free market economy. It joined NATO in 1999 and the EU in 2004.


GEOGRAPHY:

Location:	Central Europe, northwest of Romania

Geographic coordinates:	47 00 N, 20 00 E

Map references:	Europe

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

Land boundaries:	total:	2,171 km
	border countries:	Austria 366 km, Croatia 329 km, Romania 443 km, Serbia and Montenegro 151 km, Slovakia 677 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
	highest point:	Kekes 1,014 m

Natural resources:	bauxite, coal, natural gas, fertile soils, arable land

Land use:	arable land:	49.58%
	permanent crops:	2.06%
	other:	48.36%

Irrigated land:	2,100 sq km

Environment - current issues:	the upgrading of Hungary's standards in waste management, energy efficiency, and air, soil, and water pollution to meet EU requirements will require large investments

Geography - note:	landlocked; strategic location astride main land routes between Western Europe and Balkan Peninsula as well as between Ukraine and Mediterranean basin; the north-south flowing Duna (Danube) and Tisza Rivers divide the country into three large regions


PEOPLE:

Population:	9,981,334

Age structure:	0-14 years:	15.6% (male 799,163/female 755,389)
	15-64 years:	69.2% (male 3,403,375/female 3,505,640)
	65 years and over:	15.2% (male 550,297/female 967,470)

Median age:	total:	38.7 years
	male:	36.3 years
	female:	41.4 years

Population growth rate:	-0.25%

Birth rate:	9.72 births/1,000 population

Death rate:	13.11 deaths/1,000 population

Net migration rate:	0.86 migrant(s)/1,000 population

Sex ratio:	at birth:	1.06 male(s)/female
	under 15 years:	1.06 male(s)/female
	15-64 years:	0.97 male(s)/female
	65 years and over:	0.57 male(s)/female
	total population:	0.91 male(s)/female

Infant mortality rate:	total:	8.39 deaths/1,000 live births
	male:	9.09 deaths/1,000 live births
	female:	7.64 deaths/1,000 live births

Life expectancy at birth:	total population:	72.66 years
	male:	68.45 years
	female:	77.14 years

Total fertility rate:	1.32 children born/woman

Nationality:	noun:	Hungarian(s)
	adjective:	Hungarian

Ethnic groups:	Hungarian 92.3%, Roma 1.9%, other or unknown 5.8%

Religions:	Roman Catholic 51.9%, Calvinist 15.9%, Lutheran 3%, Greek Catholic 2.6%, other Christian 1%, other or unspecified 11.1%, unaffiliated 14.5%

Languages:	Hungarian 93.6%, other or unspecified 6.4%

Literacy:	definition:	age 15 and over can read and write
	total population:	99.40%
	male:	99.50%
	female:	99.30%


GOVERNMENT:

Country name:	conventional long form:	Republic of Hungary
	conventional short form:	Hungary
	local long form:	Magyar Koztarsasag
	local short form:	Magyarorszag

Government type:	parliamentary democracy

Capital:	Budapest

Administrative divisions:	19 counties (megyek, singular - megye), 20 urban counties (singular - megyei varos), and 1 capital city (fovaros)
counties:	Bacs-Kiskun, Baranya, Bekes, Borsod-Abauj-Zemplen, Csongrad, Fejer, Gyor-Moson-Sopron, Hajdu-Bihar, Heves, Jasz-Nagykun-Szolnok, Komarom-Esztergom, Nograd, Pest, Somogy, Szabolcs-Szatmar-Bereg, Tolna, Vas, Veszprem, Zala
urban counties:	Bekescsaba, Debrecen, Dunaujvaros, Eger, Gyor, Hodmezovasarhely, Kaposvar, Kecskemet, Miskolc, Nagykanizsa, Nyiregyhaza, Pecs, Sopron, Szeged, Szekesfehervar, Szolnok, Szombathely, Tatabanya, Veszprem, Zalaegerszeg
capital city:	Budapest

Independence:	1001 (unification by King Stephen I)

National holiday:	Saint Stephen's Day, 20 August

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:	rule of law based on Western model; accepts compulsory ICJ jurisdiction, with reservations

Suffrage:	18 years of age; universal

Executive branch:
chief of state:	Laszlo SOLYOM (since 5 August 2005)
head of government:	Prime Minister Ferenc GYURCSANY (since 29 September 2004)
cabinet:	Council of Ministers elected by the National Assembly on the recommendation of the president
elections:	president elected by the National Assembly for a five-year term; election last held 6-7 June 2005 (next to be held by June 2010); prime minister elected by the National Assembly on the recommendation of the president; election last held 29 September 2004
election results:	Laszlo SOLYOM elected president by a simple majority in the third round of voting, 185 to 182; Ferenc GYURCSANY elected prime minister; result of legislative vote - 197 to 12
note:	to be elected, the president must win two-thirds of legislative vote in the first two rounds or a simple majority in the third round

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 7 and 21 April 2002 (next to be held 9 and 23 April 2006)
election results:	percent of vote by party (5% or more of the vote required for parliamentary representation in the first round) - Fidesz/MDF 48.70%, MSzP 46.11%, SzDSz 4.92%, other 0.27%; seats by party - Fidesz 164, MSzP 178, MDF 24, SzDSz 20

Judicial branch:	Constitutional Court (judges are elected by the National Assembly for nine-year terms)

Political parties and leaders:	Alliance of Free Democrats or SzDSz [Gabor KUNCZE]; Hungarian Civic Alliance or Fidesz [Viktor ORBAN, chairman]; Hungarian Democratic Forum or MDF [Ibolya DAVID]; Hungarian Socialist Party or MSzP [Istvan HILLER, chairman]

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


ECONOMY:

Economy - overview:	Hungary has made the transition from a centrally planned to a market economy, with a per capita income one-half that of the Big Four European nations. Hungary continues to demonstrate strong economic growth and acceded to the EU in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $60 billion since 1989. Hungarian sovereign debt was upgraded in 2000 and together with the Czech Republic holds the highest rating among the Central European transition economies; however, ratings agencies have expressed concerns over Hungary's unsustainable budget and current account deficits. Inflation has declined from 14% in 1998 to 3.7% in 2005. Unemployment has persisted around the 6% level, but Hungary's labor force participation rate of 57% is one of the lowest in the Organization for Economic Cooperation and Development (OECD). Germany is by far Hungary's largest economic partner. Policy challenges include cutting the public sector deficit to 3% of GDP by 2008, from about 6.5% in 2005, and orchestrating an orderly interest rate reduction without sparking capital outflows.

GDP - real growth rate:	3.90%

GDP - per capita (PPP):	$16,100

GDP - composition by sector:	agriculture:	3.90%
	industry:	30.90%
	services:	65.30%

Labor force:	4.18 million

Labor force - by occupation:	agriculture 6.2%, industry 27.1%, services 66.7%

Unemployment rate:	7.10%

Population below poverty line:	8.60%

Inflation rate (consumer prices):	3.70%

Industries:	mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), motor vehicles

Industrial production growth rate:	7.50%

Exports - commodities:	machinery and equipment 61.1%, other manufactures 28.7%, food products 6.5%, raw materials 2%, fuels and electricity 1.6%

Exports - partners:	Germany 31.4%, Austria 6.8%, France 5.7%, Italy 5.6%, UK 5.1%

Imports - commodities:	machinery and equipment 51.6%, other manufactures 35.7%, fuels and electricity 7.7%, food products 3.1%, raw materials 2.0%

Imports - partners:	Germany 29.2%, Austria 8.3%, Russia 5.7%, Italy 5.5%, Netherlands 4.9%, China 4.8%, France 4.7%

Currency (code):	forint (HUF)

Fiscal year:	calendar year


TRANSNATIONAL ISSUES:

Disputes - international:	in 2004, Hungary amended the status law extending special social and cultural benefits - and voted down a referendum to extend dual citizenship - to ethnic Hungarians living in neighboring states, which have objected to such measures; consultations continue between Slovakia and Hungary over Hungary's completion of its portion the Gabcikovo-Nagymaros hydroelectric dam project along the Danube; as a member state that forms part of the EU's external border, Hungary must implement the strict Schengen border rules

Illicit drugs:	transshipment point for Southwest Asian heroin and cannabis and for South American cocaine destined for Western Europe; limited producer of precursor chemicals, particularly for amphetamine and methamphetamine; improving, but remains vulnerable to money laundering related to organized crime and drug trafficking