Economic and Political Development of Economic and Political Development of

HungaryHungary

International Open Seminar, VUZF UniversityInternational Open Seminar, VUZF University

30/11/201230/11/2012

“A nyavalya lóháton jön, gyalog megy el”

=

"Misfortune comes on horseback and goes away on foot.”

Population: 9,979,000Population: 9,979,000

Capital: BudapestCapital: Budapest

Political System: Political System: Parliamentary RepublicParliamentary Republic

Member of NATO,OECD,EU and IMFMember of NATO,OECD,EU and IMF

EU member since 2004EU member since 2004

Still not a EUROZONE memberStill not a EUROZONE member

Country overview Country overview

History of the History of the Hungarian economyHungarian economy

- 1990-1992 GDP drops by 20%- 1992 unemployment rate - 12.2% - Inflation rate – up to 35%- 1989-1993 Prices rose to 162% - FDI

Hungary`s economy since 2000Hungary`s economy since 2000

- FDI increasedFDI increased- Unemployment rate Unemployment rate - GDP rose by 3.3%GDP rose by 3.3%- GDP per capitaGDP per capita- InflationInflation

Financial crisis Financial crisis ((2008-092008-09))

Hungary faces one of the worst economic contractions in its history.

◦Negative GDP Growth in 2009 (-6.5%)

◦High inflation

Current EconomyCurrent Economy

Source: Source: Hungarian Central Statistical Office.

New Government ApproachNew Government Approach in 2010 in 2010

Viktor Orban, Hungarian PM

• Nationalising $13 billion of private pension-fund assets

• Hungarian banks - forced to allow conversion

• New media and central bank laws

• Signs of Recovery –

at a big expense