Hungary

In 2014 Hungary's economy continued its favorable development started in previous year, recording the highest growth rate between emerging and developing countries from southeastern Europe, with a peak in the first quarter. Supported by government measures such as loan guarantee scheme for SMEs and the reduction of utility prices, but also by the high level of absorption of EU funds, domestic demand was the "engine" of the Hungarian economy in 2014. Favorable evolution of the Hungarian economy have contributed to the recovery of its labor market, so the unemployment rate decreasing substantially. The positive framework of Hungary economic is completed by a budgetary deficit within acceptable limits, by high dynamics of trade, by surplus of trade balance, respectively by the active current account balance. On the other hand, even though the public debt of the country has decreased, the high level of indebtedness remains an element of vulnerability and a major risk for economy. Added to this is the risk of deflation, given that in 2014 Hungary recorded a stagflation, but also a national currency slightly weakened compared with major currencies.