Searching for a coherent economic plan
Overview:
The Hungarian economy has undergone a difficult couple of years. Already growing slowly before the global economic crisis hit it contracted sharply last year. High levels of public and external debt restricted the extent to which fiscal policy could soften the downturn. Things are starting to turn around. Economic growth is returning even if it is currently slow and unbalanced. The current account deficit and inflation are both low. Sound implementation of an IMF/EU-backed program laid the basis for this improvement helped along by a global economic rebound. However, the Bajnai government that took these sometimes unpopular measures lost parliamentary elections in April. The new Fidesz administration has got off to a bad start, struggling to put together a coherent medium-term economic plan.