One of the most advanced and reformed economies among new EU members, with a well-diversified economy and export structure. The government's moderate external indebtedness projected at about 23% of current account receipts (CARs) in 2004. External liquidity ratios at comfortable levels. The challenge of reducing the fiscal deficit and debt levels while making room for the costs associated with EU membership and continued economic reforms. The need to curb inflationary expectations and maintain the current disinflationary trend. Hungary's small and very open economy is fully integrated with the EU-25, which is the destination for 90% of its exports. Early privatization of state assets and success in implementing market-oriented reforms have attracted large foreign direct investment (FDI) inflows, and supported a
