Adapting to recession

According to the forecast of GKI and Erste Bank, Hungary, Hungarian GDP is likely to drop by about 6.5 percent this year, but the external balance is set to improve markedly, and the internal disequilibria is likely to be in line with international requir

Recession is expected reach its nadir, in the third quarter; without the hope of  fast recovery.
Deficit amounts to approximately 3.8 per cent of GDP. The external financing requirement declines to 2 billion euros, corresponding to 2.2 per cent of GDP, which is financed by the IMF-EU stand-by loan.
In March-May 2009 the number of employees was nearly 78 thousand less than one year before. Thus the rate of unemployment peaked at 9.9 percent, then decreased to 9.8 percent due to seasonality (although it averaged 7.7 per cent in 2008); however, in the course of the year unemployment is forecasted to grow further.
Since the outbreak of the crisis, households lost assets valued at approximately 600 billion HUF, mostly on stocks and investment units. This accounts for 6-7 per cent of the annual income of households. An annual average of around 285 HUF-euro exchange rate is expected.