WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

Given the decline in both consumption and investments and in view of the budget consolidation measures already introduced or still in the pipeline, recession looms large in Hungary. Positive contribution of net exports has not been enough to sustain economic growth. The question as to when (if at all) the government will conclude an agreement on the financial assistance package with the IMF and the EU that the economy so badly needs is still open, as is the question whether the government will be prepared to adjust its (economic and other) policies to comply with the international community’s expectations.