After experiencing an increase of activity in 2004, GDP growth rate slackened in 2005. . The GDP growth rate was 4% in 2004 and 3.4% in 2005. The IMF forecasts a growth by 3.4% in 2006.
The growth is mainly driven by public and private investments and exportations. Unemployment rate is still important (7.1% in 2005) but the inflation is under control (3.7% in 2005).
The agriculture sector used to be predominant but now only represents 6% of the GDP and employs 4% of the active population. Cereals, fruits, vegetables and wine are the main crops. This sector's productivity is still low. Industry contributes to one third of the GDP and is widely open to foreign investors who made its development possible. Automobile and electronics are two major sectors given that they account for 30% of the country's exports and generate 15% of the GDP.
Hungary became a member of the European Union on the 1st of May 2004. Three fourth of Hungarian exports are shipped to the European Union. The country's three main clients are Germany, Austria and France. Its first three suppliers are Germany, Italy and China. Electronics (33% of Hungarian exports) and machinery (24%) are the strong points of the country's exports. It mainly imports capital and transport goods, manufactured products and chemical products.
