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Hungary risk reaches highest level

Hungary's economic and political risk reached its highest level in one and a half years because of lasting political instability, anti-minority sentiment and corruption in the central government and at local councils, according to a measure by think tank Political Capital and business weekly Figyelő.

Hungary reached the lowest point in one and a half years on the economic and political risk index, Political Capital said. A low index value shows high risk and a high index value low risk.

Since the autumn of 2006, when it was revealed the government lied about the state of the economy to win votes, Hungary's government has been in a permanent state of instability: in the past three years 23 ministers have been sacked, said Political Capital director Attila Gyulai.

Hungary plunged 30 points - into the very high risk category - on the economic index at the end of 2008, and the country is unlikely to move out of the category this year.

Political Capital chief analyst Peter Krekó said anti-Roma sentiment among some Hungarians was hurting the country's image in the eyes of investors.

Corruption at all levels of government has hurt taxpayer morale, he added. (MTI-ECONEWS)