Bloomberg indicates troubled times in Hungary due to

  • the global economic recession and the lack of reform from communism over the past two decades.
  • Hungary’s main trading partner is the European Union which is in recession.
  • Veritas has cut shops
  • Audi has closed its plant
  • Rising unemployment, with predicitions of a rise to 8-10% unemployment
  • Violent protests due to an unpopular president
  • Bloomberg has indicated that analysts put the economic decline at about 2% next year.
  • the IMF helped thwart a major default by the country by bailing the country out
  • inflexible labor market and tax structure
  • Opportunities may arise for Hungary to attract businesses seeking to lower costs.

Action taken

  • $6.5 billion stimulus targeting small and medium businesses


  • attracting foreign businesses and investment by improving its tax structure, labor market and incentives