The Hungarian Economy in the International Context

Abstract

The growth performance of the Hungarian economy has long been influenced by its world economic environment. About half of the national income (some 40 per cent of the GDP) is accounted for by exports, which is among the highest proportions internationally. At the same time, the economy’s small size does not permit it to exercise a significant influence on world economic processes. Hungarian exports account for less than 0.5 per cent of world exports and for less than 0.2 per cent of total OECD imports. It follows that — Hungarian economic policy-makers must always pay particular attention to world market movements and to the factors shaping world economic power relations in the longer term, and — they must aim for fast adjustment, for flexible compliance with the processes unfolding in the world, and must create the necessary institutional conditions and instruments.

Acting Director, Institute for World Economics, Budapest.