Prospects for the Hungarian economy in a converging Europe Cover Image

A magyar gazdaság kilátásai a felzárkózó Európában
Prospects for the Hungarian economy in a converging Europe

Author(s): Judit Neményi
Subject(s): Economy
Published by: Globális Tudás Alapítvány

Summary/Abstract: A forecast prepared by the European Commission suggests that if we review the average trends in Central Europe from the time of accession of the new EU members to the end of this decade, then Hungary’s pace of convergence will prove the slowest among the members of the Visegrád Four. Slovakia is likely to overtake Hungary in terms of reducing the difference between its economic output and the average of the EU-15. This perspective is rather depressing, especially if we consider that in the period 1995-2003 Hungary was the country that was catching up most rapidly in the region, while in the early years of the new millennium it even seemed that it had a good chance of overtaking the Czech Republic. Are the prospects of Hungarian convergence and rising standards of living indeed this gloomy? The article examines the current state of the Hungarian economy, and the effects of austerity measures and reforms. The author discusses the most important challenges of economic policy that will decide whether or not Hungary falls behind in the regional race for economic convergence and competitiveness.

  • Issue Year: 2007
  • Issue No: 03
  • Page Range: 85-112
  • Page Count: 28
  • Language: Hungarian