Background:  Hungary was part of the polyglot Austro-Hungarian Empire, which collapsed during World War I. The country fell under Communist rule following World War II. In 1956, a revolt and an announced withdrawal from the Warsaw Pact were met with a massive military intervention by Moscow. Under the leadership of Janos KADAR in 1968, Hungary began liberalizing its economy, introducing so-called "Goulash Communism." Hungary held its first multiparty elections in 1990 and initiated a free market economy. It joined NATO in 1999 and the EU in 2004.

Location:  Central Europe, northwest of Romania

Geographic coordinates:  47 00 N, 20 00 E

Area:  total: 93,030 sq km
land: 92,340 sq km
water: 690 sq km

Climate:  temperate; cold, cloudy, humid winters; warm summers

Natural resources:  bauxite, coal, natural gas, fertile soils, arable land

Population:  9,956,108 (July 2007 est.)

Ethnic groups:  Hungarian 92.3%, Roma 1.9%, other or unknown 5.8% (2001 census)

Religions:  Roman Catholic 51.9%, Calvinist 15.9%, Lutheran 3%, Greek Catholic 2.6%, other Christian 1%, other or unspecified 11.1%, unaffiliated 14.5% (2001 census)

Languages:  Hungarian 93.6%, other or unspecified 6.4% (2001 census)

Capital name:  Budapest
geographic coordinates: 47 30 N, 19 05 E
time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October

Administrative divisions:  19 counties (megyek, singular - megye), 22 urban counties (singular - megyei varos), and 1 capital city (fovaros)
counties: Bacs-Kiskun, Baranya, Bekes, Borsod-Abauj-Zemplen, Csongrad, Fejer, Gyor-Moson-Sopron, Hajdu-Bihar, Heves, Jasz-Nagykun-Szolnok, Komarom-Esztergom, Nograd, Pest, Somogy, Szabolcs-Szatmar-Bereg, Tolna, Vas, Veszprem, Zala
urban counties: Bekescsaba, Debrecen, Dunaujvaros, Eger, Gyor, Hodmezovasarhely, Kaposvar, Kecskemet, Miskolc, Nagykanizsa, Nyiregyhaza, Pecs, Salgotarjan, Sopron, Szeged, Szekesfehervar, Szekszard, Szolnok, Szombathely, Tatabanya, Veszprem, Zalaegerszeg
capital city: Budapest

National holiday:  Saint Stephen's Day, 20 August

Flag description:  three equal horizontal bands of red (top), white, and green

Political parties and leaders:  Alliance of Free Democrats or SzDSz [Janos KOKA]; Christian Democratic People's Party or KDNP [Zsolt SEMJEN]; Hungarian Civic Alliance or Fidesz [Viktor ORBAN, chairman]; Hungarian Democratic Forum or MDF [Ibolya DAVID]; Hungarian Socialist Party or MSzP [Ferenc GYURCSANY]

Economy - overview:  Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. Hungary continues to demonstrate strong economic growth and acceded to the EU in May 2004. The private sector accounts for over 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totaling more than $60 billion since 1989. Hungary issues investment-grade sovereign debt. International observers, however, have expressed concerns over Hungary's fiscal and current account deficits. Inflation has declined from 14% in 1998 to 3.7% in 2006. Unemployment has persisted above 6%. Hungary's labor force participation rate of 57% is one of the lowest in the Organization for Economic Cooperation and Development (OECD). Germany is by far Hungary's largest economic partner. Policy challenges include cutting the public sector deficit to 3% of GDP by 2008, from about 6.5% in 2006, and tackling a persistent trade deficit. The current government has announced and begun to implement an austerity program designed to address these issues, leading to eventual adoption of the euro.