Things are less hopeful than they seemed some months ago when the Hungarian government was predicting at least slight growth for the economy in 2012. Previously, the government of Viktor Orban had foreseen growth of 0.5 percent for the year, but a top official has now revealed that stagnation, or a decrease in GDP of 0.5 percent is more likely. In a similar mood, the IMF has put its diagnosis for 0.3 percent growth for Hungary on review, as Eurozone concerns have reduced the country’s immediate economic prospects. This will put further pressure on Budapest to reach some type of accord with the IMF and EU officials in a dispute over recent legislative measures at the same time as Hungary is seeking a bailout from the two bodies. Its credit rating was cut to junk level by the three major ratings agencies in November. Since being confronted by European and IMF officials the Hungarian government has seem to be backtracking on at least some of the most controversial of its policies passed at the end of 2011.
