Hungarian economy still vulnerable after measures, Fitch says

Initiatives

Hungary's economy remains vulnerable to a pull-out by investors who finance the budget deficit even after the government implemented austerity measures, Fitch Ratings said.

Avoiding a sell-off of assets depends on the government's ability to carry out a deficit-cutting plan pledged to the European Union, Fitch said in a report released yesterday. The country's debt level will continue to rise, increasing risks to the forint and economic growth, it said. “Failure by the government to successfully implement its deficit reduction program could therefore lead to a forced and potentially destabilizing market correction to the exchange rate and the domestic economy,” according to the report. Prime Minister Ferenc Gyurcsány wants to cut the shortfall, the EU's widest, by two-thirds by 2009. He has raised taxes and cut subsidies for products such as natural gas, electricity and medicines to trim the deficit. The government is now working to overhaul education, health care and public administration. (Bloomberg)

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Environment

Gov’t Subsidizing Farmers Affected by War

Economy Environment | Aug 25, 2023, 14:15

3rd National Biodiversity Strategy Adopted

Economy Environment | Aug 10, 2023, 10:10

Tetra Pak FY22 Report Shows Progress on Sustainable Transfor...

Economy Environment | Jul 13, 2023, 16:00