The foreign trade deficit reached 3 billion USD in 1999, 300 million USD more than the year before. Exports grew by 8.7 percent, while imports went up by 9.0 percent – within that the exports of free zones rose by 30 percent, while their imports grew by 32 percent. On the other hand, customs territory exports fell by 3.2 percent with a 1.1 rise in imports. The foreign trade deficit of customs territories was 5.2 billion USD, almost 0.7 billion more than in 1998.
Like the year before, the export of machines and mechanical equipments grew the most dynamically, by 19.8 percent. With that, this sector alone is already responsible for 57 percent of all exports and its share has reached 50 percent in imports as well. The export of food products decreased by 17.7 percent.
Foreing trade relations exhibit increasing concentration. Showing a 3.5 percent growth, 83.8 percent of all exports are now directed toward developed countries. Within that 76.2 percent goes to the European Union; following the previous year’s 300 million USD surplus, Hungary closed 1999 with a remarkable 1 billion USD positive balance in this relation. At the same time the share of Central and Eastern European countries has dropped to 12.4 percent in exports and 14.3 percent in imports.
Although free zone companies have a positive impact on the country’s foreign trade balance, their surplus – amounting to 2.2 billion USD last year – is made up of added value of which no more than half can be considered as domestic income (most of all wages and their welfare charges). The remainder, should it come to that, could be taken out of the country as capital revenue. With customs territory businesses – excepting food products – most product groups produced a significant deficit. As a result of all this, the current structure of foreign trade and its trends mean increasing uncertainties for the current accounts balance.
