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WEEKLY NEWSLETTER
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Hungary
Index
The government neglected the consumer-oriented
light-industry
and food-processing branches of the economy during its
push to
develop heavy industry in the 1950s. This policy resulted
in
shortages, poor quality, a narrow product mix, and slow
development of new products. Since that time, production
of light
industrial goods, such as textiles, garments, furniture,
pulp,
and other products, has since improved significantly. In
1985
Hungary exported about 65 percent of its silk fabric
production,
50 percent of its clothing and footwear output, and 25
percent of
its textiles.
Although Hungary has not had food shortages for years,
its
food-processing branch has modernized slowly and produces
only a
limited range of foodstuffs. Given the importance of
foodstuffs
in Hungary's export profile, the slow growth of the
food-processing industry has prevented the country from
capturing
potential markets. In the late 1980s, the branch's main
products
included wine, flour, canned goods, sugar, beer, dairy
products,
and meat products. After 1970 many state and collective
farms set
up food-processing operations
(see Agricultural Organization
, this ch.).
Data as of September 1989
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