Hungary Economy
Hungary continues to demonstrate economic growth as one of the newest member countries of the European Union (since 2004). The private sector accounts for over 80% of GDP. Hungary gets nearly one third of all foreign direct investment flowing in to Central Europe. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment totalling more than US$23 billion since 1989. The Hungarian sovereign debt's credit rating is BBB+ as of July 2006, making Hungary the only other country in the EU apart from Poland not to enjoy an A grade score. Inflation and unemployment have been on the rise in the past few years, and they are expected to rise further. Foreign investors' trust in the Hungarian Economy has declined, as they deem that the stringency measures planned in the 2nd half of 2006 are not satisfactory, their focus being mainly on increasing the income side rather than curbing government spendings. Economic reform measures such as health care reform, tax reform, and local government financing are being addressed by the present government.
The Hungarian government has expressed a desire to adopt the euro currency in 2010. However, foreign analysts widely criticised that date as highly unrealistic given the current shape of the economy in relation to the Maastricht criteria; their assessments suggest that a date of 2013-2014 for Euro adoption is more realistic. Some analysts even go as far as to suggest that Romania and Bulgaria, who joined the EU in 2007, might beat Hungary to euro adoption.
The Hungarian government has expressed a desire to adopt the euro currency in 2010. However, foreign analysts widely criticised that date as highly unrealistic given the current shape of the economy in relation to the Maastricht criteria; their assessments suggest that a date of 2013-2014 for Euro adoption is more realistic. Some analysts even go as far as to suggest that Romania and Bulgaria, who joined the EU in 2007, might beat Hungary to euro adoption.
Info from - http://en.wikipedia.org/wiki/Hungary
