August 22, 2012
Hungary: An Economic Profile
As a nine part series, we are examining individual countries in the Euro Zone. Some countries are participating in the currency and others are not. The countries will vary in size.
Our first country is Hungary. Their GDP just went negative in the first quarter of 2012, but inflation has remained over 5% throughout the economic turmoil. This is different from the United States, which had deflation during some of the crisis. Hungary's debt to GDP ratio is lower than the United States (85% vs 100%) as is the deficit as a percentage of GDP (4% vs. 8%). Unemployment has been between 10% and 12% for the past three years.
Hungary's government spending has been steady over the past years, yet, they haven't seen the "meltdown statistics" that the left pontificated if the U.S. didn't spend uncontrollably. Additionally, since Hungary is outside of the euro currency, its currency has depreciated, allowing for a 40% increase in exports over the past three years.
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