The effects of global economic crisis in Hungary

Abstract

In recent years it has become apparent that the global crisis affects not only the core economic zones, but it also put pressure on individual nation-states to rethink their economic policies. The recession has brought about great waves of transformation especially in the European Union. The case of Greece, Italy, Ireland and Spain shows that the future of the political and economic union and the euro zone may greatly depend on proper local management of the crisis. Smaller countries with open economy like Hungary face particularly difficult situation in Europe, therefore, they should elaborate tailored policies to cope with the consequences of global economic crisis. This paper first briefly outlines the causes of global economic crisis, then it focuses on the most important socio-economic outcomes in Hungary. The paper pays special att ention to the changes having taken place in the national economy, the labour market and their effects on the situation of households.