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Hungary’s economic competitiveness decline modestly in Q4

  Hungary’s economic competitiveness and business climate deteriorated slightly in the fourth quarter of 2008, a recently published Microsoft Magyarország-supported survey from economic-research institute GKI reveals.

GKI said that its VEX index of macroeconomic performance, labor productivity and competitiveness relative to expenditure declined 0.6% in Hungary during the Q4 of 2008 as compared to the Q3 of the year.

Among other central and eastern European countries included in the survey, the GKI VEX index rose 0.6% in Slovakia and increased 0.5% in Poland in Q4 of 2008.

Austria registered a 0.6% slip as did Hungary, and the index fell 2.7% and 2.8% in the Czech Republic and Slovenia, respectively, during the period.

GKI attributed the relatively modest decline in Hungary’s index in the Q4 to the forint’s sharp weakening, which counterbalanced the deterioration in other factors of competitiveness, mainly due to the recession in western Europe.

The VEX index’s macroeconomic-performance component declined in all surveyed countries during the Q4 of last year as compared to the third quarter, falling the most, 5.1% in the Czech Republic, 3.4% in Hungary, 1.9% in Poland and 1.7% in Austria.

GKI said that Hungary’s macroeconomic-performance index had decreased to a relatively moderate degree as a result of a comparatively limited decline in exports. (MTI-Econews)