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Posted inCentral Europe & Baltics

HUNGARY: A Year of Economic Conlrovorsy

IN THE LAST SEVERAL months, the Hungarian government has switched the course of economic reform from gradualism to quasi-shock therapy in order to combat severe internal and external macroeconomic imbalances and a staggering foreign debt. Due to a deteriorating international image, Hungary saw its share of the total direct foreign investment in Central and Eastern Europe drop considerably. Economic risk analysts had also given the country a relatively bad ranking for the year.