Economic news portal Financial Times (FT), which has been rather critical about the ruling Hungarian government, has published an article on Tuesday concerning Hungary’s recent economic recovery. The article, written by Budapest-based correspondent Andrew Byrne, recognises that the latest macroeconomic figures of the Hungarian economy show something else than what the typical critics used to suggest about Hungary.
Andrew Byrne, who labels PM Viktor Orbán’s economic policy as “Orbanomics”, states that although many commentators and political opponents predicted the ruling Fidesz government will lead the country to economic disaster, they have now “found themselves caught off guard by Hungary’s unexpectedly robust growth.” Despite these complaints, Hungary’s economy expanded by 3.5 percent in the first quarter of 2015, compared with the same period last year, thanks to a 2.6 percent rebound in household consumption, a rise in manufacturing output and billions of euros worth of EU-funded public investments, the paper says. It also notes that Hungary’s public debt has been reduced to 77 per cent of GDP and the government has reduced the deficit to below an EU-mandated target of 3 per cent of output.
As for the governmental side, Financial Times cites state secretary Gábor Orbán, who told the paper that “the numbers indicate a consistently robust recovery.” This should ease the concerns of some critics that didn’t consider Hungary’s economic policy the right one,” he said. At the same time FT also quotes Jorg Decressin, deputy director of the IMF’s European department, who has remained rather pessimistic about Hungary. “The bottom line is the 3.6 percent we have seen is not sustainable and much of it was achieved because as you come out of recession, you get a strong rebound”, he told FT.
You can read the full article here.
via ft.com photo: Bodo Marks