Economic and Political Development of Hungary International Open Seminar, VUZF University 30/11/2012

“A nyavalya lóháton jön, gyalog megy el” = "Misfortune comes on horseback and goes away on foot.”

 Population: 9,979,000  Capital: Budapest  Political System: Parliamentary Republic Parliamentary Republic  Member of NATO,OECD,EU and IMF  EU member since 2004  Still not a EUROZONE member Country overview

History of the Hungarian economy GDP drops by 20% unemployment rate % -Inflation rate – up to 35% Prices rose to 162% - FDI

 Hungary`s economy since FDI increased - Unemployment rate - GDP rose by 3.3% - GDP per capita - Inflation

 Financial crisis ( ) Hungary faces one of the worst economic contractions in its history. ◦Negative GDP Growth in 2009 (-6.5%) ◦High inflation

 Current Economy Source: Source: Hungarian Central Statistical Office.

New Government Approach 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