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Hungarian industry. See what the "Economy of Hungary" is in other dictionaries

Hungary is an industrial country with highly developed agriculture. Horticulture and viticulture are highly developed. Mechanical engineering, production of communications equipment, measuring instruments, machine tools, chemical, pharmaceutical, metallurgical (especially aluminum, based on bauxite deposits), textile, food and flavor industries are developed. Since 1989, production in material-intensive and energy-intensive industries created with the support of the USSR has been declining.

In the USSR, such export products of the Hungarian industry as Ikarus buses and canned goods of the Globus brand were well known. International tourism is of great importance. A stable position in the economy and society has made Hungary in recent years one of the most attractive countries for foreign investment in Eastern Europe. Monetary unit - forint.

The country has been a member of the UN since 1955, joined the GATT in 1973, joined the IMF and IBRD in 1982, the Council of Europe in 1991. Since 1999 a member of NATO, since 2004 - the EU. Since January 1, 2011, Hungary has been presiding over the European Union for six months.

Hungary's GDP in 2006 amounted to 100.3 billion US dollars, per capita - 9910 US dollars. Hungary's PPP per capita GDP in 2006 was US$14,900. The structure of GDP (for 2006): agriculture and forestry - 6.7%, industry and construction - 34.5%, services - 58.8%. The most noticeable changes in the structure of Hungary's GDP in the 1990s. there was a reduction in the share of the agricultural sector and an increase in the share of services.

Hungarian industry

In industry, the manufacturing industries are the most developed (providing 90.6% of gross industrial output), including automobile, machine tool and instrument making (42.6%), food industry (15.0%), petrochemistry (13.8%). %). After the decline of the con. 1990s production is stabilizing in metallurgy and light industry, which works almost exclusively on raw materials supplied by the customer. The share of energy and water supply is 8.9%. In the extractive industries, production is gradually curtailed.

Large enterprises (more than 300 employees) produce 2/3 of all industrial products, the process of concentration of production continues, especially in mechanical engineering, energy and petrochemistry. Hungarian industry is quite dependent on the state of the world market: more than half (52%) of all industrial production is exported. Large enterprises export - depending on the industry - 60-80% of their products. The needs of the domestic market are satisfied mainly by small and medium-sized enterprises (the number of employees, respectively, is up to 50 and up to 300 people).

Statistical indicators of Hungary
(as of 2012)

Automotive industry. Among the largest enterprises, the car factories of the German Audi in the city of Gyor, the Japanese Suzuki in the city of Esztergom, the American General Motors in the city of Szentgotthard and the German Daimler in the city of Kecskemét stand out. Among the enterprises producing auto components, the factories of the American Ford in the city of Szekesfehervar, the Hungarian Raba in the city of Gyor, the Japanese Denso in the city of Szekesfehervar, the American Alcoa in the city of Szekesfehervar, the Austrian Magna Steyr in the city of Gyor stand out.

Electrical and electronic industries. Among the largest enterprises, the factories of the Finnish Nokia in the city of Komarom, the American General Electric in the cities of Budapest, Tatabanya and Oroslan, the Korean Samsung Electronics in the cities of Budapest, Göd, Szigetszentmiklosh and Yasfensaru, the Dutch Philips in the cities of Szekesfehervar and Gyor stand out. , Singaporean "Flextronics" in the cities of Budapest and Tab, the Swedish "Electrolux" in the city of Yasberen, the American "Sunmina SCI-AI" in the cities of Szekesfehervar and Tatabanya, the Hungarian-Singaporean "Orion Electronics" in the city of Budapest, the Luxembourg "Elkotek" in the city of Pécs, the American "National Instruments" in the city of Debrecen, the Korean "Mirae" in the city of Komarom, the American "Alcoa" in the city of Mor, the Dutch "NX-P Semiconductors" in the city of Szekesfehervar, the Japanese "TDK Electronics" in the city of Retshag, Chinese "Huawei Technologies" in the city of Budapest, German "Infineon Technologies" in the city of Cegled, American "Jabil Surkit" in the city of Tiszaújváros, German "Freudenberg" in the city of Petzel, Singaporean "Gee t Electronics" in the city of Budapest, the American "IBM" in the city of Szekesfehervar.

Chemical industry. Among the largest enterprises, the MOL oil refinery in the city of Sazhalombatta, the TVK chemical plant (MOL group) in the city of Tissaujváros, the pharmaceutical plants Hinoin, Gedeon Richter, Hungarofarm and Egis in the city of Budapest, the chemical plants "BorsodChem" in the town of Kazintsbartsika and "Yas Plastik" in the town of Yasberen;

Metallurgical and metalworking industry. Among the largest enterprises, the Dunaferr metallurgical plant (Ukrainian ISD group) in the city of Dunaujvaros, the aluminum plant of the American Alcoa in the city of Szekesfehervar, the Finnish Ruukka metal profile plant in the city of Biatorbágy stand out.

Agriculture in Hungary

70% of the territory of Hungary is occupied by agricultural land. Forests cover 17% of the territory. The main agricultural regions of the country are located on the plains of the central and eastern parts of Hungary.

In 1945–1948, the Communist Party program called for the division of large estates, the elimination of "feudal vestiges" in the countryside, and the creation of independent smallholders. The land was distributed among the peasants under the slogan: "The land belongs to those who cultivate it." In 1952, about a quarter of agricultural land and a fifth of peasant families were officially united into collective farms. However, agricultural production has declined. In 1953, under the more liberal New Deal, about 2,000 cooperatives were dissolved and the volume of agricultural production increased to 18%. "Collectivization" declined sharply after the 1956 revolution, but by 1963, about 97% of Hungary's agricultural land was at the disposal of collective farms.

During the post-communist period, which began in 1990, the government undertook a massive program of agricultural restructuring and privatization. The landowners were given back their property, many cooperatives were dissolved and their lands were privatized. It was not about going back to the old smallholder agriculture; the move to a mixed system of private and family farms, land associations and reorganized cooperatives based on shared ownership and market-oriented production seemed sensible. Already in 1995, only about 30.6% of suitable land was cultivated by cooperatives, 17.6% was state-owned, the rest was owned by private individuals and enterprises.

Despite a severe drought in the early 1990s and the difficulties associated with the transition to a market economy, agricultural products continued to be an important export item.

The agriculture of modern Hungary is of great importance for its economy. Fertile soil and mild climate contribute to the development of agricultural crops.

Hungary in terms of agriculture is a self-sufficient country. Today, crops such as wheat, corn, rice, vegetables, fruits, rye, barley, sunflower, oats, and beets are grown in Hungary. You can buy vegetables in bulk in Hungary at any time. Many dairy and meat products are produced. Hungarian agriculture employs 7.1% of the working population of the country, this structure includes 960,000 private households and approximately 8,200 agricultural enterprises. The Hungarian food industry provides 17% of the total industrial production and about 10% of exports. The food industry in Hungary is in demand in many foreign countries such as Russia, Romania, Croatia. Good suppliers of vegetables from Hungary are known all over the world.

In Hungary, a high level of concentration of food production, this is due to large mergers and mergers of many companies, some of which are foreign.

Hungary is also a country of winemaking. Long traditions and a wonderful climate for winemaking contribute to this. In the 90s, many state-owned wineries were given into private hands. As a result, a significant part of very successful enterprises have been formed that produce quality wines. And foreign investors have helped to significantly modernize the production of wine.

At the same time, Hungary's agriculture is experiencing problems with the beginning of the processes of socio-political transformation. The main reasons include the hasty liquidation of agricultural cooperatives, lapses in the implementation of land policy, insufficient funding for the industry, as well as droughts for a number of years. This led to a reduction in the share of agricultural products (excluding the food industry) in GDP (in 1993-2002 from 17.7% to 4.3%), the share of agricultural products in exports, the number of employees, the size of agricultural areas, livestock and etc.

National and foreign capital of Hungary

Among the largest Hungarian companies, the MOL oil and gas group stands out (about a third of its shares are owned by the Russian Surgutneftegaz and the Czech Chez Group), the OTP bank, the energy corporations MVM, Tigaz, BEM and Fevarosi , pharmaceutical companies "Gedeon Richter" and "Hungarofarm".

Among the 50 largest companies in Hungary, most of them are owned by foreign capital - the automotive Audi (Germany), the electronic Nokia (Finland), the energy companies E.On (Germany) and Panrusgaz (owned by the Russian Gazprom and the German "E.On"), telecommunications "Magiar Telecom" (belongs to the German "Deutsche Telecom"), electrical "General Electric" (USA), electronic "Samsung Electronics" (Korea), electrical "Philips" (Netherlands), automotive "Suzuki (Japan), trading Tesco (Great Britain) and Shpar (Netherlands), metallurgical Dunaferr (owned by the Ukrainian ISD group), fuel OMV (Austria), pharmaceutical Hinoin (owned by the French Sanofi Aventis"), electronic "Flextronics" (Singapore), automobile "General Motors" (USA), fuel "Shell" (Great Britain-Netherlands), trading "Auchan" (France), chemical "Borsodhem" (owned by Russian "Gazprom") , electrotechnical "Electrolux" (Sweden), aluminum "Alcoa" (S SHA), trading "Metro" (Germany), electronic "Sanmina SCI-AI" (USA), telecommunications "Telenor" (Norway) and "Vodafone" (Great Britain).

Also among the major Hungarian companies are the air carrier Malev (owned by the Russian Vnesheconombank and Aeroflot), the food and chemical company Unilever (Great Britain-Netherlands), the electrical engineering company Ganz (owned by the Czech holding Skoda), trade networks "Ikea" (Sweden), "Kora" and "Match" (both belong to the Belgian group "Louis Delhaise"). The Hungarian banking sector is represented by German Deutsche Bank, Bayerische Landesbank and Commerzbank, Austrian Erste Bank and Raiffeisen Bank, Italian Intesa Sanpaolo and UniCredit, French BNP Paribas and Credit Agricole ", Dutch "ING", American "Citibank". The German Allianz, the French Aksa, the Italian Generali, and the Dutch Aegon dominate among the country's insurance companies.

Transport Hungary Hungary

Hungary has a well-developed network of transport communications. The length of public roads is more than 30 thousand km, 90% of them have a hard surface. Railways - 7.9 thousand km. The length of inland waterways is 1.6 thousand km. The main river port is Budapest. Domestic air transportation is not carried out, there is a network of small airfields for receiving small aircraft. Ferihegy International Airport is located near Budapest.

Convenient transport location enhances the transit role of the country. Oil pipelines Druzhba-I (from Ukraine), Druzhba-II (from Slovakia) and Adria (from Croatia), gas pipelines Bratstvo (from Ukraine) and Baumgartner-Gyor (from Austria) pass through the territory of Hungary ); the total length of pipelines is 7.2 thousand km. The construction of high-speed highways is being actively carried out within the framework of the so-called. Helsinki transport corridors: in 2002 already 60% of the Hungarian sections of the “corridors” met the established European requirements.

The total freight turnover is 26.9 billion tkm (2002). Structure by types of transport: road - 51%, railway - 30%, pipeline - 15%, water - 3%. Structure by directions of transportation: international - 60%, domestic - 40%. Water and air transport are practically not used in domestic cargo transportation. Passenger traffic on intercity transportation is 785 million people, on intracity transportation - 2.8 billion people. (2002).

Hungarian banking system Hungary

Since 1987, a two-tier banking system has been operating in Hungary: the Hungarian National Bank (VNB) carries out the emission and credit policy, general control over the financial market, and authorized financial institutions lend directly to economic entities.

In 1991-94, the government's program of banking consolidation was implemented, aimed at improving the crisis state of most banks and increasing their assets, and improving the loan portfolio. Since 1995, the sale of blocks of shares in consolidated banks to reputable Western financial institutions began. By 1998, the privatization of Hungarian banks was practically over. The level of presence of foreign capital in the banking system is 63%. At the beginning 2000s, the Hungarian system of credit institutions consisted of 43 banks (90.3% of all financial and credit transactions), 226 savings cooperatives (5.6%), 9 specialized financial institutions (3.6%) and 4 housing savings banks .

Hungary Tourism

The tourism industry is one of the fastest growing sectors of the Hungarian economy. It employs 300 thousand people. (7% of the economically active population) and creates almost 10% of the country's GDP. Developed tourist infrastructure (hotels, catering points, beach, health, entertainment complexes, swimming pools, hunting lodges, fishing spots, etc.) is aimed at visitors with different incomes. Hungary annually receives 10-15 million foreign tourists. Foreign exchange earnings from tourism amount to 3.4 billion dollars (for 2002).

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Russian diplomats have always carefully approached the analysis of affairs in the Hungarian half of the Danubian Empire. In addition to the traditional collection of information about the country of residence of the diplomatic mission, several specific factors also manifested themselves here. The first is the attitude towards Austria-Hungary as a quite probable adversary with whom sooner or later Russia could enter into hostilities, which required comprehensive information about the economic potential of the empire, without which it was impossible to carry out strategic planning of the scenario of a possible armed conflict with Austria-Hungary. Hence, the Russian military department was one of the main consumers of information coming from the Russian Consulate General in Budapest. Note that the military department also sought to independently collect information about Austria-Hungary, using the contacts of the naval and military attache, who were in the Russian embassy in Vienna.

The territory of Hungary almost closely adjoined the borders of the Russian Empire, which once again actualized for the Russian political and military establishment the importance of studying Hungary and its economy. Russia closely followed the economic success of Hungary. Hungary was the main food producer in Austria-Hungary. In Hungary, new high-tech industries were developing, and, above all, electrical engineering and defense. Hungary extracted minerals of exceptional military-strategic importance for the belligerent country, and in this regard, Russia was interested in the mining and metallurgical industry of Hungary. In addition, Russia was interested in the development of the country's transport infrastructure, including the possibilities of the port in Fiume. This was directly related to the assessment of the mobilization abilities of Austria-Hungary and its army. Hungary, due to its geographical position, was located between the Russian and Balkan theaters of hostilities, and the speed of movement of the troops of the Habsburg empire largely depended on its transport systems.

However, the Hungarian economy attracted the attention of not only Russian diplomats and the military, but also representatives of Russian business. At the end of the XIX century. economic relations between Russia and Hungary are beginning to gradually come out of a state of stupor. And although their volume was still insignificant and did not correspond to the economic potential of the two countries, both in Hungary and in Russia, a significant part of business representatives showed mutual interest. Therefore, the economic circles of Russia demanded from the diplomats full information about the development of the national economy of Hungary.

Particular attention to Hungary was fueled by another circumstance. The development of the economies of the two countries coincided in many respects. Russia and Hungary entered the path of industrialization relatively late, in both countries the agricultural sector and agricultural exports were of exceptional importance. Both in Hungary and in Russia, the task of modernizing agriculture was acute, both countries were heavily dependent on foreign investment. Already at the beginning of the twentieth century. the two countries are beginning to take into account each other's experience in conducting economic policy. Therefore, the consul general in Budapest, V. Lvov, sought to provide St. Petersburg with complete information about the successes and failures of the Hungarian economy. Prince V. Lvov was skeptical about the results of 1900 for the national economy of Hungary: “Hungary has never been under the pressure of such an oppressive economic situation, it has never been so deeply aware of its weakness, its condition has never been more bleak, and the prospects for the near future are not were marked by greater gloominess, as at the time of summing up the results of the past year (1900 - I.K.) ". The Consul General singled out two sections of the reasons for this state of affairs in Hungary. On the one hand, these were the miscalculations of the Hungarian government, on the other hand, the crisis in Hungary was aggravated by the situation on the world markets and Budapest could not influence this circumstance in any way.

The economic recovery in Hungary at the end of the 19th century, in the opinion of the consul, collided with the limited capacity of the country's consumer market. A significant part of the population of Hungary had a low level of income, so they did not act as active consumers of industrial products. In addition, in the conditions of the economic crisis that hit Hungary at the turn of the 19th-20th centuries, there was a drop in the standard of living of the general population, which could not but aggravate the situation in the country's consumer market. Hence, the Hungarian industry had no more opportunities for further expansion of production.

The situation in the national economy of Hungary, according to Lvov, was complicated by the uncertain economic relations between Austria and Hungary, as well as the growing competition from the Austrian industry. At the beginning of the twentieth century. anti-Hungarian sentiments are growing in Austria, including among representatives of Austrian business. They looked at Hungary as a dependent in the Danube Empire, and Austria, being the economic center of the empire, bore more than 60% of the general imperial expenses. In addition, Vienna was quite satisfied with the situation when Hungary was an agrarian appendage of Austria.

All this, in the opinion of the consul, contributed to the spread in Hungary of the idea of the complete economic independence of the kingdom of St. Stephen from Austria. The consul general saw in this state of affairs a great danger to the unity of the empire. "In Austria they do not want to understand that open and secret hostility towards Hungary should induce her to radically resolve the highest economic task (obtaining complete economic independence of Hungary from Austria. - I.K.)" . In the event of a break by Austria and Hungary of the economic union, both sides would lose from this. In this case, Austria lost a capacious market for its industrial products, where competition from other states was limited by customs barriers, and Hungary lost a profitable market for its agricultural products, lost much-needed Austrian technology, investments and loans. Thus, the Consul General was not one of those politicians and diplomats who believed that if Hungary obtained full economic independence, its national economy would receive only benefits, rightly noting the huge negative consequences for the Hungarian economy in the event of breaking economic ties with Austria.

The collapse of the single economic space called into question the existence of the dualistic monarchy itself. V. Lvov was sympathetic to the economic ambitions of Hungary. He believed that Hungary could no longer be an agrarian and raw materials appendage of Austria, since the profitability of agriculture was falling in the world, European farmers could not compete with agricultural producers of the New World countries, and above all with the United States. Regarding the active penetration of agricultural products from the United States to Europe, V. Lvov noted: “There is no way to curb this heightened competition with reactionary legislative measures, it can only be combated through the development of productive forces, through the release of consumers from excessive tax burdens, and, finally, through the unification all branches of industry, with the ultimate goal of the economic unification of Europe. From here, the industrialization of Hungary became the most important strategic task for Budapest.

This statement of the Consul General can be considered revolutionary for its time, when high customs duties and the erection of other restrictive barriers in Europe and the United States were seen as the main panacea for competition with foreign manufacturers. V. Lvov can rightfully be attributed to the number of pioneers of the idea of European integration in the Russian Foreign Ministry, V. Lvov expressed these views more than once. V. Lvov believed that prohibitive customs duties were unable to improve the economy, only the modernization of the national economy and the growth of the cultural level of the population were able to bring the Hungarian and other European economies out of the crisis. Speaking about the industrialization of Hungary, V. Lvov constantly noted the vital need for the country to modernize its agriculture. In his opinion, the Hungarian government has done something in this direction. In particular, he positively assessed the state regulation of labor relations in the agricultural sector, the construction of irrigation systems, the patronage of the distillery industry, the expansion of lending to agricultural producers, an attempt to create a system that facilitated the marketing of agricultural products in Hungary and abroad, and the expansion of budget financing for agriculture. At the same time, the consul wrote: "... but it should be noted with regret that the Hungarian agrarians continued tireless agitation against other branches of the economic life of the state, namely industry and trade." In V. Lvov's opinion, the agrarians should not have forgotten that Hungary's agriculture would collapse if the successes in the country's agrarian sector were not accompanied by an upsurge in Hungary's industry and trade. The country's agriculture could not successfully develop locally without connection with other sectors of the economy.

The world economy at the beginning of the twentieth century. found herself in a difficult situation. The Boer War, political instability in China, a wave of strikes in the leading countries of Europe, the coal crisis, panic on the stock exchanges led to the destabilization of the economic system. Under these conditions, investors begin to panic and withdraw their assets from developing economies, including Hungary, Russia, and the countries of the Balkan Peninsula. Hungary belonged to those countries that had very limited domestic investment, they largely depended in their economic development on the influx of foreign capital, so its outflow at the beginning of the century hit their economy hard. Domestic investors could not make up for the losses associated with the flight of foreign investors from the country, which faced Hungary in 1900-1901. “All the aforementioned phenomena completely destroyed the influence of foreign welfare and the accumulation of foreign capital that was observed in Hungary,” wrote V. Lvov on this occasion.

The Consul General also singled out internal Hungarian factors that led the economy to a deep crisis. First of all, this included internal political instability and a split in the ruling elite on the question of ways for further economic development of Hungary. Here the interests of agrarians, industrialists and representatives of the trading business intersected. With all his sympathy for the industrialization of Hungary, V. Lvov believed that a dangerous bias had arisen in the country in favor of industry and to the detriment of the interests of the country's agriculture.

The Consul General paid great attention to the anti-crisis policy of the Hungarian government. Only the diplomat was bewildered by the appeals of Hungarian politicians and businessmen to the consumer about the need to purchase only domestic goods. It was, in his opinion, absolutely pointless. Firstly, the Hungarian industry was weak and could not completely fill the country's consumer market. Secondly, the consumer in his preferences in the market is guided not by patriotism, but by such categories as the quality and price of goods.

V. Lvov paid great attention to other manifestations of the anti-crisis policy of the Hungarian government, the construction of new industrial enterprises, support for small industry, stimulation of the technical and vocational education of workers, the development of the navy, all that in the future could lead to the economic recovery of Hungary. Moreover, there was one important prerequisite for this, despite the crisis, the Hungarians did not lose optimism and faith in the great future of their country.

Highly appreciating the efforts of the Hungarian government to bring the country out of the crisis, V. Lvov could not but pay attention to the alarming symptoms. Thus, Budapest pursued a policy of uniting small merchants into large associations. The government believed that these measures would save small traders from ruin and lead to the further development of trade. But the consul drew attention to two dangerous points associated with this process. Firstly, the associations of merchants were created strictly on a religious basis, and not on the basis of economic expediency, and, secondly, the associations immediately demanded subsidies from the state, which small merchants never did. V. Lvov will develop the theme of excessive dependence of Hungarian business on the state in 1902.

V. Lvov devoted considerable attention to the analysis of affairs in certain sectors of the national economy of Hungary. In the country's industry, he noted contradictory processes against the background of a general decline in industrial production. With the coal crisis in Europe and miners' strikes in Bohemia in Hungary, hard coal production is increasing, he even uses the term "coal boom". In addition, the growth of production was noted in the sugar, distillery industry and those enterprises that were under the control of syndicates. The consul saw the monopolization of Hungarian industry as one of the ways to strengthen its position within Hungary and abroad.

The economic crisis that began in 1899 developed in such sectors of industrial production as construction and the production of building materials, metallurgy and engineering. In the conditions of an economic crisis, consumer interest in purchasing real estate always decreases, which also affected Hungary at the turn of the 19th-20th centuries. The decline in the construction sector reached alarming proportions. The reduction in the construction of railways in Hungary, according to the consul, led to a deep crisis in the metallurgy and engineering industry of Hungary. This situation was exacerbated by the collapse of the Austro-Hungarian iron syndicate, which led to increased competition in the metallurgy of Austria and Hungary. The industrial decline led to an increase in the number of unemployed among Hungarian workers, which could not aggravate social tensions in the country. This was combined with a fall in wages in Hungary and a rise in the cost of living.

This circumstance forced the Hungarian government to pursue an active social policy. Assessing its results, the consul wrote: “During the reporting year (1900 - I.K.), the Hungarian government perfectly regulated the situation of agricultural workers. As for the factory workers, the Hungarian industry is, unfortunately, too weak to take on the same heavy obligations as the industry in Austria and Germany. V. Lvov generally appreciated the efforts of the Hungarian government to develop social legislation, which is confirmed by his subsequent reports. However, he was well aware that the development of social legislation is directly related to the level of labor productivity in industry, any reduction in the working day and wage increases are impossible without industrial production reaching a new qualitative level. Unsupported by technological innovations, social benefits lead to the collapse of the industrial production of any country, especially such "young" industrial countries as Hungary. The Consul General showed a gap in the industrial development of Austria and Hungary, so Austria, unlike Hungary, could pursue a more decisive social policy, including in the "labor question".

In agriculture, the harvest of 1900 turned out to be very mediocre, not justifying the hopes that the Hungarian farmers placed on it at the beginning of the year. It was about 3% below the average for the last 5 years. All this was accompanied by low grain prices prevailing on the world market and a drop in wool prices, despite their slight increase at the end of the 19th century. True, successes were noted in the production of grapes in the country, the consul emphasized the high quality of grapes in 1900. The same successes were noted in the production of fruits and vegetables.

Economic instability affected the development of the country's financial and banking system. Hungary's balance of payments deficit was constantly covered by loans and temporary budget items. The savings of the population practically did not grow, the volume of credit operations of the Budapest banks decreased, if on January 1, 1899 they amounted to 515 million crowns, then on January 1, 1900, only 480 million crowns. All this led to a fall in the rate of Hungarian securities and the volume of transactions on the Hungarian stock exchanges. True, among the reasons for the stock market crisis, the consul singled out not only economic instability. The Hungarian government introduced an exchange tax and limited the independence of exchanges to combat exchange speculation, which also affected the volume of exchange transactions. The crisis also affected the country's insurance sector. Despite all the difficulties, the Hungarian banks managed to avoid significant losses, and this was largely due to the actions of the State Bank of Austria-Hungary, which, with its clear and competent policy, mitigated the consequences of the economic crisis and accumulated the gold reserves of the Danubian Empire.

Ambiguous processes also took place in the country's transport. In 1900, the volume of transportation on the railways increased. At the same time, the river fleet experienced stagnation, while the navy, on the contrary, increased the volume of traffic. This was also due to some increase in the export of Hungarian goods outside the Danubian Empire. True, the Hungarian trade balance itself aroused serious concerns in the consul. The country was completely dependent on the export of sugar, coal and timber, which made its position in the world market vulnerable, it was necessary to diversify Hungarian exports, but for this it was necessary to develop industrial production focused on the production of export products, and even Austria had problems with this.

Great concern among the Hungarian elite and V. Lvov caused Germany's increase in customs duties on imports of Hungarian agricultural products. Budapest and St. Petersburg were well aware that this would lead to increased competition between Russian and Hungarian producers in the markets of other European countries and that the interests of Russian and Hungarian farmers would suffer in this struggle. Lvov was also afraid of this, bringing his warnings to the Ministry of Foreign Affairs of the Russian Empire.

The interest of the Russian side in matters in the Hungarian economy is evidenced by the fact that the Consulate General in Budapest forwarded to St. Petersburg the annual reports of the Ministers of Trade and Agriculture of Hungary in the country's parliament, materials of parliamentary debates on this issue and a number of analytical materials of the Budapest Chamber of Commerce for 1901 d. Moreover, all this went without cuts and own comments, which increases the significance of these documents as historical sources.

The beginning of 1902 overshadowed the news of the economy. The Consulate General in Budapest was more interested in interethnic relations in Hungary, which are beginning to escalate. In 1902, the work of the Serbian National Church Council failed again. This actualized the problem of the position of the southern Slavs in Hungary. The Vienna authorities stepped up their penetration into Bosnia and Herzegovina, which also increased the administration's friction with part of the local Slavic population. In Hungary itself, the debate about the nature and strategy of national policy has intensified. These and other political events dominated the dispatches and messages of the Consulate General to St. Petersburg.

In general, in the Hungarian economy in 1902, V. Lvov stated that stagnation continued, the reasons for which were the presence of three negative factors. The first is the state's excessive guardianship of the activities of most joint-stock companies and individual enterprises with the help of a wide system of benefits and state orders, which gave rise to a parasitic mood among them, suppressed private initiative and reduced competitiveness. This view was shared by many economists and politicians within the Habsburg Empire and beyond. However, the Hungarian government was afraid to completely let its industry "free float", fearing that it would not be able to compete on equal terms with Austrian industry, not to mention such leaders as Germany, Great Britain and the USA. By the way, in Russia itself the situation in this regard was not much different from Hungary.

The second factor so reiterated in reports of this kind is the continuing uncertainty of economic relations with Austria. And the third factor, perhaps heard for the first time, is the failure of the Magyar entrepreneurs against the backdrop of the successes of their Jewish colleagues. V. Lvov came to a disappointing conclusion for the Magyars: they were inferior to the Jews in all respects (entrepreneurial initiative, striving for innovation, lack of fear of free competition, etc.). Magyar business was not very effective and clearly lost to Jewish business. These reasonings of the consul had good reasons. Indeed, the Jewish community of Hungary, by virtue of its abilities, energy, knowledge, occupied a significant place in the country's economy, culture, and social sphere, playing a large role in Hungary's success in the late 19th and early 20th centuries.

In agriculture, the results of the year were contradictory. On the one hand, 1902 was a fruitful year in Hungary, and the prices of agricultural products did not fall, as the demand for Hungarian agricultural exports increased in Austria in the face of a poor harvest in the United States. But, on the other hand, Hungary did not strengthen its position in the European market, as it was flooded with cheap products from Russia and Romania. The consul assessed the results of Hungary's foreign trade activities positively, as well as the work of state railways.

In one of the reports of the Consulate General of Russia in Budapest, there are quite remarkable assessments of the prospects for the development of economic relations between Hungary and Russia. In his report dated January 27, 1902, Prince V. Lvov concluded that in Austria there was a growing interest among politicians and business representatives in developing economic ties with Russia, but these aspirations did not find support among the Hungarians. On the one hand, the political elite in Budapest feared that the development of economic ties with Russia could lead to a cooling of relations with Berlin. On the other hand, Hungary was afraid that in the context of expanding economic contacts between the two neighboring empires, it might face fierce competition with Russian agricultural products on the Austrian market. Consequently, Prince V. Lvov saw the main threat to the development of good neighborly relations between Austria-Hungary and Russia precisely in the position of the Hungarian leadership and business. By the way, this position was quite common not only in the Russian Foreign Ministry, but also in the socio-political and business circles of the country as a whole.

Russia closely followed the discussion in Hungary and beyond about the advisability of building a canal connecting the Oder with the Danube. In addition to the development of economic ties between Austria-Hungary and Germany, this channel was of great strategic importance in the event of war. The Russian diplomat also paid attention to the plan for the construction of railways in Bosnia and Herzegovina, approved by the Hungarian parliament. Thus, the consulate very carefully monitored any information about the development of transport arteries in Hungary and adjacent territories. The same information was scrupulously collected by Russian diplomats in Vienna.

The consulate in 1902 paid considerable attention to the prospects for the development of economic relations between Hungary and Bosnia and Herzegovina. In addition to the noted plan for the construction of railways, which, by the way, in the opinion of the consul, testified to the growing economic ties between Hungary and Bosnia and Herzegovina, V. Lvov stated the fact of the expansion of Hungarian penetration into the occupied provinces. In particular, this was clearly evidenced by the increase in Hungarian exports to Bosnia and Herzegovina from 19.8 million crowns in 1898 to 24 million crowns in 1900. The Consul predicted further development of Hungary's relations with Bosnia and Herzegovina in the future.

Thus, the Consulate General of Russia in Budapest in 1900-1902. noted the stagnation in the Hungarian economy after a long economic recovery in the last third of the 19th century. The reasons for this phenomenon had both long-term grounds: unfavorable conditions on the world agricultural market, intense competition from the Austrian industry, lack of investment, excessive state intervention in the national economy, narrowness of the domestic market, and short-term grounds in the face of the uncertainty of economic relations with Austria, tactical miscalculations of the Hungarian government. At this time, the previous economic agreement with Austria expired, and under the new agreement, the parties could not reach a compromise. With the exception of some assessments, V. Lvov generally provided objective information about the economic development of Hungary.

However, he often could not collect disparate facts into a coherent system. Drowning in details, the consul did not see many obvious facts, including, in principle, the high rates of economic development of Hungary at the turn of the 19th-20th centuries, despite some “overheating” of the economy. In 1897, the gross domestic product of Hungary was 340.41 million crowns, in 1900 - 371.84 million crowns, in 1901 - 375.83 million crowns, in 1902 - 396.07 million crowns . Nevertheless, this circumstance in no way diminishes the merits of the information materials of the Russian diplomats who worked in Budapest. Until now, they are an important historical source in the study of the main trends and contradictions in the development of the Hungarian economy in the era of dualism.

Hungary is one of the most developed agricultural countries in Eastern Europe. The level of its economic development is quite high and, most importantly, continues to grow rapidly. Of course, attention is also paid to the industrial complex - the Hungarians are interested in attracting foreign investment and are ready to offer entrepreneurs from all over the world very favorable conditions!

What is the economy of Hungary based on?

1. About 70% of the country's territory is allocated for agricultural land. Agricultural regions are concentrated in the central and eastern parts of the country. It should be noted that before the crisis of 2008, the country showed one of the best indicators of economic development among the “young” EU members, and as of 2014, it is again taking the lead.

The agro-industrial sector is an ideal direction for foreign investment, because after the crisis this niche of the Hungarian economy has some gaps. The country has enough natural and physical resources that will allow the successful development of agriculture in the coming years.

2. Metallurgy once had a great influence on the Hungarian economy. But since 2008, there has been a decrease in the weight of this sector in the economy, and one of the most powerful metallurgical plants in Europe, Dunafer, is on the verge of bankruptcy. Take this into account if you plan to open a metal rolling company in Hungary. The situation is similar with the production of cement - the country is interested in foreign investment in cement plants.

3. Now the Hungarian economy is built mainly on mechanical engineering. There is a relatively inexpensive labor force, so many global holdings are willing to build powerful automobile plants in Hungary, for example, Raba, Suzuki, Mercedes and other brands.

4. Gedeon Richter has a huge impact on the level of economic development in Hungary. It is one of the largest European manufacturers of pharmaceutical products.

Energy resources and economic development of Hungary

One of the main factors positively influencing the Hungarian economy in 2014 is the wide opportunities for transportation and distribution of energy resources coming to the European Union from the Russian Federation. It is through the territory of Hungary that huge volumes of oil and gas flow - the state enterprise MOL can be called a monopolist in this area (it is the most influential player in the European energy market).

The transportation of energy carriers lies at the French enterprise Eon, and already from it the energy carriers come to the Austrian company OMW. By the way, not so long ago, Hungary got the opportunity to supply gas in reverse to Ukraine - this is a very relevant and promising trend for the local economy.

Logistics and economics: Hungary as a key point of the European transport system

Recently, an increasing role in the development of the national economy has been assigned to the motor transport sector. Indeed, today, with the support of the EBRD, a huge number of European-level transport routes are being built in Hungary - Budapest is connected to the main routes of neighboring countries, turning Hungary into a leading player in the EU logistics market.

There is also a lot of other evidence of the prospects of the motor transport direction in the economy:

Thanks to Ukrainian investments, construction of one of the largest logistics parks in Eastern Europe is in full swing near the border between Ukraine and Hungary.
A huge terminal has been built in Debrecen, designed for the transit and reception of air cargo.
The economy of Hungary today owes much to the Danube. It is this waterway that connects the Black Sea and Europe (Hungary in particular) - there are several large ports along the banks of the Danube. These enterprises ensure the reception of goods from the Black Sea basin and the transportation of goods along the Danube to other European countries.
Rosneft's investment has enabled the Hungarian authorities to start building Europe's largest LNG storage terminal.

As you can see, Hungary is slowly but surely turning from a supplier of raw materials into a major producer of finished products, and in a couple of decades it can lead the logistics market in Europe.

The role of the tax system, or what is the secret of Hungary's transitional economy

The first thing that potential holders of a Hungarian residence permit and permanent residence should pay attention to is the strict penalties for non-payment of taxes. Perhaps this is one of the main points that can be used as an argument when rejecting your application for a residence permit - Hungarians are very attentive to tax legislation. There is a reason for this - experts see the reasons for the success of Hungary's transitional economy precisely in the stimulating function of taxes.

There are 3 main groups of taxes - they are paid in Hungary by all enterprises without exception:

AFA, or VAT, - 27% (applies to most goods and services), or 18% (applies to food, pharmaceuticals, transportation) or 0% (applies to the work of export enterprises). This tax is paid every month, year or quarter - depending on the amount of annual income.
Helyi iparuzesi ado, or industrial tax (1–2%);
Income tax (10% regardless of the size of the company's income) - any company operating in the country must pay income tax.

World experts agree that in the coming years, the Hungarian economy expects stable growth. This is facilitated by the thoughtful policy of local authorities and the active involvement of foreign investment. By the way, the conditions for foreign entrepreneurs in the country are really very favorable - you can read more about this in the article on business prospects for Russians in Hungary.

Britain is a moderately developed industrial and agrarian state that actively participates in international trade. GDP - 62.5 billion dollars, GDP per capita - 6.2 thousand dollars (2002). With a share of national production in world GDP of 0.15%, the share of the country's foreign trade in world trade is 0.47% (2000). The inflation rate has been consistently declining from 28.2% in 1995 to 5.3% in 2002.

GDP structure (2001): agriculture and forestry - 4.3%, industry and construction - 32.0%, trade and personal services - 12.8%, transport and communications - 9.1%, financial activities - 21, 7%. The most noticeable changes in the structure of GDP in V. in the 1990s. there was a reduction in the share of the agricultural sector and an increase in the share of services.

The share of the private sector in GDP is more than 80% (in 1990 - 10%). Privatization peaked in 1995, and by 1999 this process was largely completed. In 2002, there were 190 enterprises (mostly unprofitable) in state ownership. By 2006, the government of P. Medjesha intends to leave about 40 enterprises in the state's ownership (mainly forestries and transport companies "Volan").

The share of foreigners in the ownership structure of the Hungarian economy has reached 30%. Of the 200 largest Hungarian enterprises, about 160 are partially or wholly foreign-owned; every tenth enterprise in Hungary has a foreign partner, co-founder or owner. Foreign capital controls 90% of the communications and long-distance communications industry, 70% of the banking and financial sector, and 60% of the country's energy sector. 2/3 of the products of the Hungarian manufacturing industry come from foreign-owned enterprises.

The employment rate is 56.3%, or 3.9 million people. (2002). The average annual number of unemployed is 239 thousand people. Lasted from Ser. 1999 the process of reducing unemployment in con. 2002 changed the trend and amounted to 5.8%.

Hungarian industry is quite dependent on the state of the world market: more than half (52%) of all industrial production is exported. Large enterprises export - depending on the industry - 60-80% of their products. The needs of the domestic market are satisfied mainly by small and medium-sized enterprises (the number of employees, respectively, is up to 50 and up to 300 people).

Agriculture is experiencing problems with the beginning of the processes of socio-political transformation. The main reasons include the hasty liquidation of agricultural cooperatives, lapses in the implementation of land policy, insufficient funding for the industry, as well as droughts for a number of years. This led to a reduction in the share of agricultural products (excluding the food industry) in GDP (in 1993-2002 from 17.7 to 4.3%), the share of agricultural products in exports, the number of employees, the size of agricultural areas, livestock, etc. . The government's agrarian policy is aimed at strengthening the role of agriculture in the economy, especially in the sectors traditional for Hungary: the production of corn, wheat, meat, vegetables, fruit, and wine.

Agricultural land is 6.1 million hectares, of which more than 50% is arable land. 1.5 million hectares are occupied by spike crops, 1.0 million hectares by corn.

Crop production is represented mainly by grain farming, as well as vegetable growing and horticulture (including viticulture). Livestock provides more than 60% of domestic agricultural income. The most developed are pig breeding, breeding of cattle for meat and dairy purposes, and poultry farming. The needs of the domestic market are also satisfied by sheep breeding and fish breeding in artificial reservoirs.

V. has a well-developed network of transport communications. The length of public roads is more than 30 thousand km, 90% of them have a hard surface. Railways - 7.9 thousand km. The length of inland waterways is 1.6 thousand km. The main river port is Budapest. Domestic air transportation is not carried out, there is a network of small airfields for receiving small aircraft. Ferihegy International Airport is located near Budapest.

Convenient transport location enhances the transit role of the country. The Druzhba-I (from Ukraine), Druzhba-II (from Slovakia), and Adria (from Croatia) oil pipelines, the Bratstvo (from Ukraine) and Baumgartner-Gyor (from ); the total length of pipelines is 7.2 thousand km. The construction of high-speed highways is being actively carried out within the framework of the so-called. Helsinki transport corridors: in 2002 already 60% of the Hungarian sections of the “corridors” met the established European requirements.

The development of telecommunications in Hungary is proceeding dynamically: despite the relatively modest growth of traditional telephony, mobile communications are developing at an accelerated pace. The number of mobile phone subscribers increased from 2.5 million to 5.5 million in 2000-02. The volume of radio broadcasting reached 800 thousand hours, television broadcasts - 1.8 million hours. Hungarian television broadcasts on three state channels. In addition, there are three private channels and many commercial cable networks. Broadcasting is carried out by three state stations and a number of commercial ones. Control over the political content of state electronic media programs is carried out by boards of trustees, to which the government and the opposition delegate their representatives on an equal footing.

After the recession of 1987-97, the retail turnover is constantly expanding (in 2002 - 24.8 million dollars). This is facilitated by the growth of monetary incomes of the population, the emergence of new types of trade (hypermarkets, shopping centers) and improving the quality of service. Trade turnover structure (2002): 33.4% - foodstuffs, 28.4% - vehicles, spare parts and fuel for them, 16.4% - furniture and household appliances, 9.5% - cultural and educational goods.

The tourism industry is one of the fastest growing sectors of the Hungarian economy. It employs 300 thousand people. (7% of the economically active population) and creates almost 10% of the country's GDP. Developed tourist infrastructure (hotels, catering points, beach, health, entertainment complexes, swimming pools, hunting lodges, fishing spots, etc.) is aimed at visitors with different incomes. V. annually receives 10-15 million foreign tourists. Foreign exchange earnings from tourism amount to 3.4 billion dollars (2002).

Since 1987, Hungary has had a two-tier banking system: the Hungarian National Bank (VNB) implements the issue and credit policy and general control over the financial market, while authorized financial institutions lend directly to economic entities.

In 1991-94, the government's banking consolidation program was implemented, aimed at improving the crisis state of most banks and increasing their assets, and improving the loan portfolio. Since 1995, the sale of blocks of shares in consolidated banks to reputable Western financial institutions began. By 1998, the privatization of Hungarian banks was practically over. The level of presence of foreign capital in the banking system is 63%.

At the beginning 2000, the Hungarian system of credit institutions consisted of 43 banks (90.3% of all financial and credit transactions), 226 savings cooperatives (5.6%), 9 specialized financial institutions (3.6%) and 4 housing savings banks (0. 5%).

The degree of concentration of banks in Hungary is quite high: the top six banks collectively own almost 60 percent of the assets of the banking system.

The public finance system structurally consists of four subsystems: the central government (central level), local governments (local level), separate state funds, and social insurance bodies.

In 1998-2001, the overall level of the central government budget deficit was consistently reduced from 4.8% to 3.3% of GDP. In 2002, a sharp surge followed - up to 9.6% of GDP, caused by a change in government and a massive increase in social benefits. A target of 4.5% of GDP is planned for 2003 in order to reach the level of the Maastricht criteria for EU membership (3% of GDP) in 2004.

In 2002, the budget revenues amounted to 17.8 billion dollars, of which about 80% were tax revenues (taxes, excises, duties). Measures to stimulate entrepreneurship and increase the efficiency of the private sector led to a reduction in the degree of centralization of budget revenues: the share of state budget revenues in GDP in 1994-2002 decreased from 52.5 to 27%.

The main place in tax revenues to the budget is occupied by the general turnover tax (analogous to Russian VAT), whose share is 39%, income tax (24% of revenues), consumer tax and excises (19%), business profit tax (called corporate tax) - ten%.

V. uses the treasury system of budget execution, i.e. all funds necessary for state institutions are received and spent from the so-called. single treasury account. The Hungarian State Treasury is responsible for the technical work of financing the central budget.

The institutional divisions of the Hungarian financial system are also the State Supervision of Financial Organizations (monitoring the compliance with the law by participants in the stock and currency markets), a set of banking and financial institutions, various organizations providing services for the non-state management of financial markets (stock and commodity exchanges, the central clearing center , brokerage and dealer firms, etc.), insurance companies and pension funds.

V.'s public debt in 2002 was 9.2 trillion for. (37.5 billion dollars), or 52.2% of GDP. All functions related to the management of public debt (including the currency and forint components) are performed by a specially created Center for Public Debt Management (PDMS). The CDGD was tasked with a gradual transition from the practice of attracting foreign loans to finance external debt obligations to the issuance of government bonds denominated in the national currency - forints. In 2002, the external debt-gross B. of the central government (ie without private sector borrowing) fell from 27.8 to 24.8 billion euros.

V. is distinguished by the comparative smoothness of social contrasts, although property stratification is growing. The minimum wage is $200, the minimum pension is $82 (2002). The policy of large-scale wage increases for state employees and the strengthening of the forint in 2001-02 raised the level of the average wage in the country to $500 (the average level of nominal wages by sector of the economy ranges from $345 in agriculture to $1,000 in the financial sector) .

The growth of real incomes in 2002 was 13.6%. As a result, trade turnover increased (by 11%), investments in various forms of accumulation (forint bank deposits (by 13%), life insurance (by 20%), contributions to non-state pension funds (by 27%), etc.). ). Government policy to stimulate housing construction has contributed to an increase in investment in real estate.

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 emerging pension system of V. combines the principles of the pay-as-you-go and funded systems and includes three elements: basic pensions paid within the framework 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 economy of Hungary is distinguished 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 - 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 V.

In 2002, more than 90% of Hungarian exports went to European countries (EU, countries of Central and Eastern Europe, the Baltic States, Russia, Ukraine, Belarus). 75% of imports came from there. The most significant foreign trade partners of Hungary are Germany (share in the 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 by 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 about 2.0 billion dollars annually (the maximum in 1995 was 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, in connection with the deterioration of the world economic situation, there was an increase in the outflow of capital and the transfer of enterprises located in V. to other countries.