Economy of Hungary
The extensive system of social benefits is being restructured according to the principle of need. The main goals of the reform are to reduce the burden of the state budget and reduce the volume of the shadow economy. However, the initiated transition to insurance financing of health care is accompanied by a reduction in hospital beds and medical staff, a revision of the drug reimbursement system, and an expansion of the range of paid services.
The essence of the ongoing pension reform is the transition to a mixed pension system, which involves the introduction of insurance principles for all elements of pension provision and an increase in the personal responsibility of the future pensioner for accumulating pension contributions.
The Hungarian pension system being formed combines the principles of the pay-as-you-go and funded systems and includes three elements: basic pensions paid as part of social insurance, based on the principle: one year of work experience – 1% of the pension paid; compulsory pension insurance, involving the deduction of 8% of earnings; voluntary pension insurance in about 250 non-state pension funds.
The Hungarian economy is characterized by a high degree of openness and participation in the international division of labor. Foreign trade has a positive trend, but since 1992 it has been chronically passive. The volume of exports in 2002 was 34.3 billion dollars, imports – 37.6 billion dollars.
The commodity structure of exports in 1998-2002 was dominated by products with a high degree of added value: the groups “machinery and equipment” (57-59%; mainly communications equipment, sound processing equipment, automated data processing systems, household and industrial electrical appliances) and ” processed products” (29-31%). Agricultural products accounted for 7-8% of exports.
The main contingent of imports was also “machinery and equipment” (50-52%) and “processed products” (35-38%). The share of energy carriers in imports is 6-8%, and Russian energy carriers account for 70% of all energy supplies to Hungary.
In 2002, more than 90% of Hungarian exports went to European countries (EU, Central and Eastern European countries, Baltic States, Russian Federation, Ukraine, Belarus). 75% of imports came from there. The most significant foreign trade partners of Hungary are Germany (share in trade turnover 29.6%), Austria (7.0%), Italy (6.7%) and France (5.2%). The place of the Russian Federation in the top five foreign trade partners of Hungary (share – 3.8%) is determined mainly by the dynamics of energy supplies, which account for 83% of the total volume of Russian supplies to Hungary, as well as the possibilities of increasing Hungarian exports to the Russian Federation (in 2002 – 1, 3% of the total export volume).
A favorable business climate in the country, a fairly high position in the rating of international agencies attract foreign capital. To con. 2002 was accumulated 24.5 billion dollars of foreign investment (3rd place in Eastern Europe after Poland and the Czech Republic). In the 2nd floor. 1990s the influx of foreign investment amounted to approx. 2.0 billion dollars annually (maximum in 1995 – more than 3.5 billion dollars). 70% of investments are associated with the acquisition of privatized enterprises, 30% – the construction of turnkey enterprises. In 2001-02, due to the deterioration of the world economic situation, there was an increase in the outflow of capital and the transfer of enterprises located in Hungary to other countries.
Population of Hungary
Since 1980, according to Countryaah, there has been a natural decline in the population, not compensated by the balance of migration.
Birth rate – 9.5‰; mortality – 13.1‰, infant mortality – 7.2 people. per 1000 newborns (2003). Average life expectancy: men – 67 years, women – 76 years (2001).
In the age and sex structure of the population, the proportion of women is constantly increasing (1990 – 52%, 2001 – 52.3%, 2003 – 52.5%) and elderly people (persons under 14 years old – 16.1%, 15 – 59 years old – 63, 1%, 60 years and older – 20.8%).
60% of all residents live in cities, incl. 29.1% in cities with a population of more than 100 thousand people. (including 17.1% of metropolitan residents), 30.2% – in cities with a population of 10 to 100 thousand people, 33.1% – in settlements with a population of 1 to 10 thousand people. and 7.6% – in settlements with a population of less than 1 thousand people.
The retirement age is 62 years (women born before December 31, 1946 may retire earlier if they have the established length of service or other conditions).
The ethnic composition is homogeneous: according to the results of the last census, in 2001, 97.0% of the population recognized themselves as Hungarians (self-name – Magyars). The Law “On National and Ethnic Minorities” (1993) identifies 13 minorities: Roma (190 thousand people), Germans (62.2 thousand people), Slovaks (17.7 thousand people), Croats (15, 6 thousand people), Armenians, Bulgarians, Greeks, Poles, Romanians, Rusyns, Serbs, Slovenes, Ukrainians. The Jewish community, not taken into account by official statistics, has approx. 55 thousand people and is the largest in Eastern Europe.
St. 3 million Hungarians live in neighboring states: in Romania (1.6 million people), Slovakia (600 thousand people), Serbia (350 thousand people), Ukraine (170 thousand people), in Austria (50 thousand people), Croatia (25 thousand people) and Slovenia (10 thousand people). More than 1.5 million people of Hungarian origin live in the USA, Canada, Israel, Australia, South Africa and other countries.
Religion: There are approx. 260 cult organizations and religious associations, covering 74% of the population with their influence. Among believers, 73% are Catholics and Greek Catholics, 22% are Reformed and Protestants of other directions, 4% are Evangelicals (Lutherans). Approximately 0.2% are Baptists, Orthodox of various persuasions, and Jews. There is a small Buddhist community.