Hungary's economy highly vulnerable - Járai
Wednesday, November 9, 2005, 17:43
Hungary's twin deficits make its economy one of the world's most vulnerable, which could prompt foreign investors to sell government bonds, leading to higher
interest rates, central bank president Zsigmond Járai told a conference on Wednesday. Járai called for measures to improve stability and protect the economy from external vulnerability, telling businesspeople gathered in Eger, NE Hungary, that the huge budget deficit posed a particular risk. If foreign investors lose their appetite in the face of increasing risks, this could trigger a fall in forint, speed up inflation and lead to wage and pension devaluations," Járai warned.