The challenge of growth

In the second decade of the 21st century Hungary faces the challenge of growth on at least three levels. First, economic growth, which grew by an annual 3.9 per cent in 1996–2000 and even by 4.2 per cent in 2001–2006, decelerated to a mere 1 per cent in 2007, i.e prior to the global financial meltdown.1 In 2008 growth was a miniscule 0.6 per cent, followed by a deep decline of 6.3 per cent, which is truly exceptional for peacetime and considerably exceeded the EU average of -4.2 per cent. Growth resumed in 2010, however, but it was a meagre 1.0 per cent, to be followed by an acceleration to 2.5-3.0 per cent in 2011 and 3.0-3.5 per cent in 2012 according to consensus estimates. In short, levels of performance achieved already back in 2006 will be regained by 2013 at the earliest, while many other countries, such as China and India, continue to grow by an annual rate of 9 and 7 per cent respectively.