ECONOMY AND POLITICS IN HUNGARY DURING 2ND ORBÁN GOVERNMENT PERIOD

J. Gősi,J. Gál

The 2nd Orbán government and the more than two-thirds parliamentary majority behind a relatively heavy heritage took over in the summer of 2010. The left-liberal governments of GDP in 2006-2009, reaching 12% of the size of austerity (expenditure cuts and tax lifting) as a result of Hungary's policy is not developed in a similar situation as the crisis in Greece. The most difficult years of the crisis – between March and June 2009 – the international debt financing market premium for loans fall from six percent to two, the euro exchange rate is reduced from 270 to 315 HUF. The 2nd Orbán government's so-called unorthodox economic policies – which happened to break with the IMF and serious political disagreements with the EU has been associated with – as a result of increased to HUF exchange rate of 300, the premium at the end of 2011 exceeded 6% again; currently around 3%, although the EU abolished the excessive deficit procedure against Hungary, and the sixth year of the current account is positive. Hungary's GDP after a 6.7% decline in 2009, in 2010 – faster than expected – increased by 1.2%, in 2011 was only 0.7% in 2012 and 1.7 % drop. Accelerated use of the 2007-2013 periods, EU investment funds due to a 1-1.5% in 2014 and expected in 2013 2-2.5% growth. The Hungarian economic performance in the last decade since EU accession has been at average of less than 0.5% per year increased. The durable and – at least – from 2.5 to 3.5% growth per year have failed to materialize in the domestic political economy foundations between 2010 to 2014.

Keywords: macroeconomics, 2nd Orbán Government, unorthodox economic policies, deficit

Download
File name Analecta_2014_1_5.pdf File Size 279 Kilobytes Created Date Friday, 04 July 2014