Economy in Pictures- Hungary

-From The Economist

Hungary―2007 Article IV Consultation Concluding Statement;

The authorities must act to retain the confidence of markets and counteract the possibility of a low growth trap. The fortuitous parallel improvement in global markets' risk appetite has helped. Another adverse shift in sentiment and surprises in Hungary's fiscal and external accounts could reverse the markets' reprieve. Importantly, despite vibrant exports, Hungary's overall growth relative to the rest of Europe deteriorated in early 2005 and that divergence was accentuated in 2006. The policy challenge is to lower domestic and external vulnerabilities and to ensure a strong recovery from the current adjustment process.