Hungary's international business daily

November 25, 2009, 9:56 CET

PM says 2010 will be "tough" year, says employment recovery to lag

Although Hungary's economy may restart growing in the second half of 2010 and the IMF prognosticated a 4 percent GDP growth for 2011, the next year will be "very tough", Prime Minister Gordon Bajnai said at the Budapest Corvinus University on Tuesday.

The employment rate may start to improve in four to six months after the beginning of an economic recovery, he said in a lecture.

Bajnai attributed to low employment, bad political compromises and the trap of catching up with the advanced countries that the global crisis hit Hungary more severely than the average.

Hungary's employment rate of 57 percent, one of the lowest in the European Union, means that hardly more than half of the adult population is working legally, he said.

Bajnai criticised politicians for making a series of bad compromises to grasp or keep power and bringing economic growth to a halt by increasing the rate of redistribution.

The prime minister said that Hungary should abandon the bad habit of taking out foreign loans. The country should continue to pursue the sober-minded economic policy it adopted under the constraint of the global crisis, he said.

4 Comments

what year in Hungary isnt tough? Tired of the same ol' pessimism.
;)

Where are the 32% of people that should be employed in the overall number above? (57 work 10.3 are unemployed).


When Bajnai was criticising politicians for doing whatever it takes to stay in power, did he remember to mention he himself refusing to going to the polls so that either party would have a 4 year mandate and would be forced to see through the policy changes?

beh - now we have an article that says Hungary will have
accelerated growth from the beginning of next year.
http://www.realdeal.hu/20091126/merrill-lynch-says-hungary-
to-enjoy-accelerating-growth-from-early-2010

which is it guys? lol

well link doesnt link... doesnt matter, article is at this site. ;)

Latest News

Published every Tuesday, the Budapest Business Week newsletter contains all the previous week's headlines from Realdeal.hu and related stories from other All Hungary sites, as well as a list of upcoming events of interest to the foreign business community in Hungary.

Email: 

See other newsletters | Privacy policy

Recent Comments:

#9
peter c.: A city to the north of us..called Bratislava, had exactly zero Ryan Air flights when Ryan Air left K... from "Danubius leases Balaton hotel to management group to cut risk on downturn"
#2
Corrupcio: Corruption and malpractice everywhere. Hungary is beginning to really suffer now because the tide ha... from "Budapest mayor Demszky's senior adviser in custody"
#22
mave : Anywhere in the North west would be good for me .I used Stanstead to Balaton, but another airport wo... from "Airport near Lake Balaton to reopen in spring"
#10
DustyBin: @ WillG. I do take your point and my post as you correctly summize was just an observation. Common s... from "Finance Minister challenges blogger over reforms"
#2
sanbasan: Isn't there enough really Hungarian crap not to need to "Hungarize" things one can read about in eve... from "Forced auction outrage mounts as utility targets wrong indebted homeowner"
The latest news from the other member sites of the All Hungary media network

Fatal error: Cannot redeclare is_valid_email() (previously declared in /var/www/allhungary.hu/mt/php/mt.php:716) in /var/www/allhungary.hu/mt/php/mt.php on line 722