External trade

The 1997 export of agricultural and food products in USD is 3.8% above that of in 1996. However, the increase in imports is more dramatic at 16%. In figures, USD 2,849 million for export as against USD 1,087 million of imports (table 18). Thus the favourable balance is USD 1,762 million, but this balance shows a USD 44 million decline (2.4%) from 1996 (table 19 and diagram 37). Though the 1997 balance is declining, the agricultural sector has had over, the long term, a traditional positive balance of external trade. This makes a considerable contribution to the external trade of the country.
    Our export haves remained Europe-oriented: more than 88% of our agricultural exports being within the continent (diagram 38). Asia, though until recently the most dynamically developing trading area of the world, represents only 3.5% of Hungarian food exports. Only 1.7% of our agricultural products are exported to Northern-America, and the ratio keeps declining (diagram 39).
    The share of the European Union in our agricultural export has significantly fallenfrom the 1996 level of 47%, and in 1997 it was below 41%. The decline was accompanied by a considerable decrease by 11%, calculated in USD, of the absolute value of our export. At the same time,imports from the EU have has increased by 13%.
    Despite the difficulties, Hungarian ouragricultural export to CEFTA countrieshas increased by 22% in 1997. Thus the 1997 value of the export was above USD 481 million. At the same time,our imports from CEFTA countries doubled near to USD 100 million. Exports to the CIS countries has dynamically increased by 32%. Out of this, the share of the Russian market is dominant (table 20 and diagrams 40-41).
    In spite of this growth, the increase in agricultural sector exports is lower than that of exports of the economy as a whole. Therefore, compared to the previous years, agriculture its share in total exports has declined. The sector's share of imports is only 3.6%. Fortunately, the role of processed products in exports has increased.
    With the decline in domestic demand, and despite the decline in production, more of the food industry's products are exported to foreign markets. The proportion was approximately 24 percent in 1997, whereas in 1996 it was only 20 percent.
    Further investigations of the export structure reveal that the most important products exported to the Member States of the European Union are alive animals and semi processed animal products. The exports to CEFTA and CIS countries, however, are dominated by processed products. These features reflect the market orientation, strategy and motivations of Hungarian exporters.
    Germany has remained the largest market for Hungarian agricultural products in 1997 , with a share of 16.8%. This was followed by Russia (15.2%) and, in a declining order, Italy, Poland and Austria. Altogether, these five countries account for to almost 50 percent of the total exports.