- published: 19 Sep 2015
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The economy of Hungary is a medium-sized, structurally, politically and institutionally open economy in Central Europe and is part of the European Union's (EU) single market. The economy of Hungary experienced market liberalization in the early 1990s as part of the transition from a socialist economy to a market economy, similarly to most countries in the former Eastern Block. Hungary is a member of the Organisation for Economic Co-operation and Development (OECD) since 1995, a member of the World Trade Organization (WTO) since 1996, and a member of the European Union since 2004.
The private sector accounts for more than 80% of the Hungarian GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment worth more than $70 billion. Hungary's main industries are mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), and motor vehicles. Hungary's main agricultural products are wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, and dairy products.
Hungary i/ˈhʌŋɡəri/ (Hungarian: Magyarország [ˈmɒɟɒrorsaːɡ] ( listen)) is a country, which is located in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The country's capital, and largest city, is Budapest. Hungary is a member of the European Union, NATO, the OECD, the Visegrád Group, and is a Schengen state. The official language is Hungarian, also known as Magyar, which is part of the Finno-Ugric group and is the most widely spoken non-Indo-European language in Europe.
Following a Celt (after c. 450 BC) and a Roman (AD 9 - c. 430) period, the foundation of Hungary was laid in the late 9th century by the Hungarian prince Árpád, whose great-grandson Saint Stephen I was crowned with a crown sent by the pope from Rome in 1000 AD. The Kingdom of Hungary lasted for 946 years, and at various points was regarded as one of the cultural centres of the Western world. After about 150 years of partial Ottoman occupation (1541–1699), Hungary was integrated into the Habsburg Monarchy, and later constituted half of the Austro-Hungarian dual monarchy (1867–1918).