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Emerging Europe Economics Focus

Emerging Europe Economics Focus

Hungary: a step in the right direction, but more pain to come

While the latest attempt at fiscal reform in Hungary is impressive given the dire economic backdrop, it is unlikely to prevent the country from turning to the IMF for additional funding next year. What’s more, it will prolong the current recession – we expect GDP to shrink by 7.5% this year and a further 2.5% in 2010.

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