Hungary’s Economic Woes

According to Al Jazeera, Hungary was once the 10th most dynamic economies in the world.  Yet, many multinationals that sought this growth have divested and gone elsewhere, to Bulgaria, Slovakia and Romania.  Now the country may become divided on why the economic crisis has turned so sour.

The heating and plumbing business mentioned in the video blamed the left-wing government for its policies.  Another family business which imported soya beans from Latin America is struggling from the Credit Crunch and a lack of liquidity to finance operations.  It made it difficult to pay for the cargo.

The IMF bailed out hungary to prevent economic destablization in the region. More instability may arise due to the social services being cut in order to service debt and lack of liquidity.