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.
- $6.5 billion stimulus targeting small and medium businesses
- attracting foreign businesses and investment by improving its tax structure, labor market and incentives