The Hungarian economy has been the weakest for years in the region, and it fell short of its own capabilities. Now this is accompanied by a credibility crisis (perceived in the political, economic and business spheres as well). Although the growth was slightly faster than the EU average in 2011, it was lower than the regional one.

In its forecast released in September GKI has already indicated that external demand would slow down and domestic economic policy exerted a strongly adverse effect on domestic demand and financial trends. The Hungarian economy reached a dead end. Genuine turn is needed in economic policy.

According to the forecast of GKI prospects for the next year are gloomy, and recession is looming, though less deep than two years ago. Inflation is accelerating, the general government deficit is larger than planned, however, it probably will be less than 3 per cent.

The deteriorating growth prospects of the Hungarian economy are in part a consequence of the worsening global economic environment and the uncertainties concerning the solvency of some countries. However, domestic economic policy played a decisive role.