Hungary Economy

By | October 15, 2021

ECONOMY: AGRICULTURE, LIVESTOCK AND FISHING

In Hungary, agriculture is still a rather weak sector, mainly characterized by the presence of small farms with a traditional economy. Mechanization is now a consolidated fact and constitutes the strong point for a desirable development, together with the presence of very favorable environmental conditions: the arable land and arborescent crops cover more than half of the national surface: a value among the highest in Europe.. However, the agricultural sector is already able to meet internal needs and, together with livestock products, also contributes to exports. Cereals stand out, in particular corn (widely used as fodder) and wheat (widely used by the population in preparing food). Barley, rye and oats follow, finally rice, all with productions not particularly noteworthy. In addition, potatoes and various vegetables are grown in moderate quantities, especially tomatoes, onions, beans, peas, etc. Apples stand out among the fruit crops, followed by plums, peaches, pears and apricots. According to smber, viticulture is of particular importance, which, widespread since the Middle Ages especially in the hilly regions of northern and western Hungary, feeds a widely established wine production, which contributes to exports with fine wines such as tokaj. The wine region in which this refined wine brand is produced has been declared a World Heritage Site by UNESCO, as a seal of a centuries-old tradition. Finally, a typically Hungarian production is paprika, made from red chilli. Industrial crops include sugar beet, tobacco, textile plants such as hemp and flax, as well as various oil crops such as sunflower, rapeseed and soy. The forest mantle does not constitute a noteworthy economic resource, as the already limited woodland extension does not feed widespread and consolidated productive realities. The zootechnical patrimony constitutes one of the main wealth of the country. Cattle are well represented by both dairy and meat breeds; pigs are widespread throughout the country, as are poultry, whose products largely contribute to the overall exports of the livestock sector; sheep are present in smaller quantities. Finally, horses are famous throughout Europe (with prestigious race breeds), although their number is constantly decreasing. Fishing is limited to the Danube, Tisza and Lake Balaton since there is no access to the sea in the country. Despite being able to count on modern equipment, it is an activity significantly threatened by water pollution.

ECONOMY: MINERAL RESOURCES AND INDUSTRY

The Hungarian subsoil is not particularly rich in resources, but the country has a good availability of energy minerals: lignite (in the mines of Márkushegy, Salgótarián, Tatabánja and the southern slope of the Matra mountains), hard coal (located in the Liassic basin of Pécs), petroleum, mined in southwestern Hungary, natural gas, uranium. Among the metal ores, bauxite occupies a prominent place; there are also, but in limited quantities, iron, manganese, copper, lead, zinc, gold. Bentonite is produced in Mád and Istenmezeje. The moderate wealth of fuels has facilitated the construction of numerous thermoelectric plants; energy production is almost entirely of thermal origin. Hungary can now count on a modern industrial structure, which contributes about one third to GDP (34.3% in 2000). A leading role is played by the steel industry (with factories in Dunaújváros, Diósgyór and Ózd) steel, cast iron and ferroalloys; the metallurgical one mainly produces aluminum and copper, but also works bauxite, zinc, lead, etc. The mechanical industry is very diversified and active in all kinds of productions, mainly concentrated in the Budapest area (buses), but also present in Györ (railway equipment), Miskolc, Pécs and Szigetszentmiklós; mainly supplies tractors, railway equipment, commercial vehicles, engines, tools of various kinds, radio and television sets, electrical material and electronic equipment. The center of Székesfehérvár hosts numerous establishments of foreign multinationals, such as Philips, IBM and Matsushita and represents the beating heart of the Hungarian electronics industry. The textile industry has reached a good level, widely distributed over the country and which processes mainly cotton and wool, but also artificial and synthetic textile fibers. The chemical sector is another of the leading sectors of the Hungarian economy: the country can count on numerous complexes, which supply nitrogen fertilizers, pharmaceutical products, resins and plastics, caustic soda, nitric, hydrochloric and sulfuric acids, etc. In particular, there are pharmaceutical plants in Budapest, Debrecen and Tiszavasvári. The petrochemical industry is also in progress; Hungary owns various refineries, which partly process the domestic crude and partly (such as the Százhalombatta refinery, SW of Budapest) oil, which arrives from Russia through the famous “Friendship Pipeline”. Distinguished by an ancient tradition, the food industry also occupies an important place; among the various sectors that prevails milling, sugar, oil and canning. Particularly renowned are the sausages, such as the Hungarian salami, which occupies a respectable position in the context of exports along with preserves. There are also numerous breweries and tobacco factories (the latter located in Salgótarián, Eger, Miskolc and Seghedino). Finally, there are paper mills (in Csepel and Lábatlan), cement factories, rubber factories (in Seghedino, Budapest and Nyíregyháza); of excellent level are the crystals and artistic ceramics.

Hungary Economy