So is the recovery in advanced economies “more than just hype”? With the exception of the Eurozone, PwC believes it is. The report characterizes output levels as improving at fundamental levels, with even Greece ready to report its first current account surplus since taking up the European currency in 2001. Further, “On the financial side, asset prices continue to grow broadly in line with trend rates suggesting fears about markets overheating may be overstated.”

While strong growth is forecast for Germany and Northern Europe, however, PwC finds Eurozone recovery “a tale of two halves.” Southerly and CEE economies “are more reliant on external demand as their main source of economic growth, while the public sector remains weak and there is a risk of reform fatigue,” the last item of which seems particularly relevant here in Hungary.

The entire Global Economy Watch by PwC may be downloaded here.