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. In the more open GORBACHEV years, Hungary led the
movement to dissolve the Warsaw Pact and steadily shifted toward
multiparty democracy and a market-oriented economy. Following the collapse
of the USSR in 1991, Hungary developed close political and economic ties
to Western Europe. It joined NATO in 1999 and is a frontrunner in a future
expansion of the EU.
Terrain: mostly flat to rolling plains; hills and low mountains on the Slovakian border
Natural resources: bauxite, coal, natural gas, fertile soils, arable land
Geography - note: landlocked; strategic location astride main land routes between Western Europe and Balkan Peninsula as well as between Ukraine and Mediterranean basin
Population: 10,075,034 (July 2002 est.)
Ethnic groups: Hungarian 89.9%, Roma 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%
Government type: parliamentary democracy
Capital: Budapest
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
Executive branch:
chief of state: Ferenc MADL (since NA August 2000)
head of government: Prime Minister Peter MEDGYESSY (since 27 May 2002)
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 June 2000 (next to be held by June 2005); prime minister elected by the National Assembly on the recommendation of the president
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
election results: Ferenc MADL elected president; percent of legislative vote - NA% (but by a simple majority in the third round of voting); Peter MEDGYESSY elected prime minister; percent of legislative vote - NA%
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)
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/MDF 188, MSZP 178, SZDSZ 20
elections: last held 7 and 21 April 2002 (next to be held NA April 2006)
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]; Christian Democratic People's Party or KDNP [Gyorgy GICZY, president]; Hungarian Civic Party or FIDESZ [Zoltan POKORNI]; Hungarian Democratic Forum or MDF [Ibolya DAVID]; Hungarian Democratic People's Party or MDNP [Erzsebet PUSZTAI, chairman]; Hungarian Justice and Life Party or MIEP [Istvan CSURKA, chairman]; Hungarian Socialist Party or MSZP [Laszlo KOVACS, chairman]; Hungarian Workers' Party or MMP [Gyula THURMER, chairman]; Independent Smallholders or FKGP [Jozsef TORGYAN, president]
Economy - overview: Hungary continues to demonstrate strong economic growth and to work toward accession to the European Union. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms is widespread, with cumulative foreign direct investment totaling more than $23 billion since 1989. Hungarian sovereign debt was upgraded in 2000 to the second-highest rating among all the Central European transition economies. Inflation and unemployment - both priority concerns in 2001 - have declined substantially. Economic reform measures such as health care reform, tax reform, and local government financing have not yet been addressed by the ORBAN government.
GDP: purchasing power parity - $120.9 billion (2001 est.)
GDP - real growth rate: 3.9% (2001 est.)
GDP - per capita: purchasing power parity - $12,000 (2001 est.)
GDP - composition by sector: agriculture: 6%
industry: 34% services: 60% (2000 est.)
Population below poverty line: 8.6% (1993 est.)
Household income or consumption by percentage share:
lowest 10%: 4.1% highest 10%: 20.5% (1998)
Distribution of family income - Gini index:
25.3 (1998)
