Recovery from the Deep Recession (March 2009–April 2010)

In Hungary, the special features of the crisis to be solved run parallel: deep deleveraging, foreign exchange loan crisis (housing crisis), and recession. In this chapter, the joint efforts of the Central Bank and the Bajnai Government to stabilize the country are accounted for. Hungary regained its momentum. The economy was put back on a sustainable growth path with a moderate budget deficit and declining internal and external debt. Unemployment was diminishing, export was strong, contributing to a positive balance of payments. Though the exchange rate was 10% weaker than before the crisis, the nonperforming ratio of foreign exchange denominated mortgage loans was still much below 10%.