1. National background information

The infrastructure of chemical safety in Hungary, and its operation and regulation are closely linked to Hungary's geographic, political, demographic, industrial and agricultural characteristics. Hungary is situated in Central Europe, covering about 1% of Europe's total area (93,000 km2). It shares frontiers with Slovakia to the north, the Ukraine to the northeast, Romania to the east, Yugoslavia to the southeast, Croatia to the south, Slovenia to the southwest, and Austria to the west. It has a temperate climate, is relatively poor in natural resources, and 70% of its area is arable land. Its population is a little more than 10 million people, nearly all of whom speak Hungarian as their mother tongue. Ethnic minorities comprise approximately 2.2% of the population. Less than 1% of those over 10 years of age have not received formal schooling. The workforce numbers 3.6 million people, the rate of unemployment stood at 9.5% in 1996. 1989-1990 saw the start of far-reaching political and social reforms. Hungary's economy was in a period of transition to a market-oriented economy between 1989 and 1995; at the moment, the majority of business entities are small enterprises and are privately owned. The GDP declined over the period between 1989 and 1993; it started growing again in 1994, but the GDP level in 1996 was still some 14% below levels recorded in the latter years of the 1980s (in 1996, GDP per capita was 4402 USD). 1996 saw a significant reduction in internal and external imbalances, which was underscored by improved competitiveness and dynamic export growth. Industry accounted for 28,3 % of GDP in 1995. Agriculture accounted for 7.1% of GDP, employing a little over 10% of the total workforce. Industrial productivity in 1996 was approximately 1.5 times that of 1989 levels.
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