Hungary
Lying in the center of Europe, Hungary has traditionally been a meeting point for west and east Europe. Sharing a border with seven countries including Austria, Slovakia and the Ukraine, Hungary is ideally positioned to serve both emerging as well as established markets.
A population of 10 million is among the best educated in the region with excellent universities and a fast-growing reputation as an R&D center of excellence.
Hungary has seen many international investors establish facilities here, in particular for electronic manufacturing and telecommunications. these have recently included Nokia, Sanyo, BT, Flextronics and Texas Instruments.
Investment Promotion Agency:
Dora Dweik
Project Manager UK & Ireland
ITD Hungary
Andrássy út 12
Budapest, 1061
Hungary
tel: +36-1-472-8100
fax: +36-1-472-8101
Macro Economics
"During the financial crisis, only energetic arm-twisting and deep-pocketed IMF and EU support averted a meltdown of the economy. Hungary’s debt is the highest in the region, at over 70% of GDP. More than 1m Hungarian households have mortgages in foreign currency, making them vulnerable to swings in the exchange rate. The mainly foreign-owned banks rely heavily on support from headquarters. That cocktail of problems calls for stability, not adventurism. ......This could turn nasty. Rating agencies have put Hungary’s debt close to junk status. Refinancing it will be costly (and the IMF and EU need to be repaid next year). The forint fell by 3% against the euro after the collapse of the IMF/EU talks (although soon recovered). The shenanigans risk derailing Hungary’s six-month stint as EU president, starting in January.....but.... Hungary’s economy can withstand some wobbles. The current account is in surplus; unemployment is dropping and industrial production rising; government bond sales have been strong. Barring upsets, Hungary can manage, for this year at least, without the IMF and EU." Read more from The Economist here
Credit Crisis:
October 2008 crisis: Hungary secured 20 billion euros ($26.5 billion) in IMF- led aid in October and raised interest rates to avert a default and defend the forint as the global financial crisis threatened to engulf the country.
Jan 11th, 2009: "Hungary needs to execute its plan to reduce the budget deficit to 2.6 percent of gross domestic product this year from an estimated 3.3 percent in 2008", IMF president Strauss-Kahn told reporters in Budapest today. The central bank needs to be “gradual and cautious” in further interest rate cuts, he added
Policy considerations:
additional spending cuts and boost its stimulus package for companies
Currency under (downward) pressure
Jan 2009: The forint dropped to near a record low today as economists said the recession may derail the budget deficit and lead to violations of the loan agreement.
Funniest Geography Quiz ever!
"Is Hungary even a country?"
Places in Hungary
Budapest
Budapest is the capital city of Hungary. It has a population of just under 2 million people, which is equal to 19% of the national population. Budapest lies in the Central Hungary region which shares its Northern borders with Slovakia. It is the main commercial and financial center in the country.
All four motorways of Hungary start from Budapest and the capital is connected by motorways with Vienna, Lake Balaton and the north-eastern and south-eastern parts of the country. There are three international railway stations and an international airport in the city boundaries.
There are a wide range of academic institutes in Budapest, from the Gödöllõ University to the Budapest University of Economics. Much concentration is placed on science subjects in Hungary which is reflected in the number of science based technical institutes in the city.
Pecs
Pécs is the fifth largest city in Hungary and is the capital of Baranya County. It is geographically situated to serve as a gateway to the Balkan and North Italian regions.
The national road which passes through the city provides a connection with Budapest, (198 km) to the North-East and with the Croatian border to the South-West.
5 Intercity and 4 fast trains commute daily between Pécs and the capital. Rail travel also allows access into Bratislava in Slovakia and Krakow in Poland. The closest airport is in Budapest.
Pecs is fast developing its service sector and electronic industry. One of the most spectacular growth rates has been in the service sector, which has accompanied a 40% decline in the number of workers in industry.
The city’s efforts have received a boost with the announcement that Nokia has chosen the city for its monitor manufacturing operations. Investors are attracted by the highly educated workforce in Pecs, with the rate of skilled active earners higher than the national average. The electronics and IT professional training required by global investors is provided by all levels of formal education: vocational secondary school, technical school and university. Higher education institutes in the city are Janus Pannonius University, Medical University of Pécs, Pécs Section of Ferenc Liszt Musical College and Bishop's Seminary and College of Theology.
Macroeconomic Profile 2008:
excessive public expenditures that led to big budget deficits...have hurt the country....leading to annual growth rate of 1 to 2 percent
Too -slow cities
Budapest, Hungary
Breathtakingly romantic--but its economy is broken. Among the world's 150 biggest cities, last in predicted GDP growth, according to PricewaterhouseCoopers.
External Links
Library of Congress: Country Studies
Excellent source of historical information about a country; "The Country Studies Series presents a description and analysis of the historical setting and the social, economic, political, and national security systems and institutions of countries throughout the world.
Comments (0)
You don't have permission to comment on this page.