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 remarkable diversification of Hungary's economy and export sector. Hungary has the fourth-highest GDP per capita among new EU members, estimated at $10,196 in 2004. Medium-term economic prospects are good, with GDP growth projected to pick up pace toward 4% by 2006, from 2.9% in 2003. The revival of exports and investment growth will more than compensate for the gradual slowdown of consumer demand, and this will make Hungary's growth profile better balanced. Hungary's government net external indebtedness
