Hungary: facing the crunch
The economies of Central Europe, particularly Hungary, have been enjoying a
rapid growth in recent years. However, as the effects of the credit crunch ripple
around the world, Hungary appears to be suffering in its wake. Ruth Saunders spoke
to some of the country’s leading advisers to find out how the local business community
is coping in the face of a wider economic downturn.
Setting the scene
From an economic perspective, Hungary has taken a few knocks this year, resulting
in a much less optimistic outlook for the year ahead. At the beginning of November
this year, PM Ferenc Gyurcsany said that while Hungary's economy is still growing
quarter by quarter, stagnation or a slight decline seems inevitable in the coming
year. Furthermore, Fitch Ratings has downgraded its outlook for Hungary from stable
to negative as concerns grow about the impact of the global credit crisis on the
central European country's economy.
In a bit to stabilise the economy Hungary has been granted a multi-billion dollar
rescue package by the IMF, the EU and the World Bank. The $25 billion (£15.6 billion)
package is one of the biggest ever, dwarfing the $16.5 billion loan to Ukraine earlier
in October.
Want to read more? Click here to go to the Corporate UK e-magazine