Editing Economy of Hungary (section)

=== Post 2008 recession Hungarian economy ===
The economy showed signs of recovery in 2011 with decreasing tax rates and a moderate 1.7 percent GDP growth.<ref>{{cite web |url=http://www.bbj.hu/economy/hungary-gdp-grows-14percent-yr-yr-in-q4-up-17percent-in-2011_62619 |title=Hungary GDP grows 1.4% yr/yr in Q4, up 1.7% in 2011 |publisher=BBJ |access-date=15 February 2012 |archive-date=29 March 2012 |archive-url=https://web.archive.org/web/20120329062656/http://www.bbj.hu/economy/hungary-gdp-grows-14percent-yr-yr-in-q4-up-17percent-in-2011_62619 |url-status=dead}}</ref>

From November 2011 to January 2012, all three major [[credit rating agencies]] downgraded Hungarian debt to a non-investment speculative grade, commonly called "junk status".<ref name="bbc-20111222">{{cite news |url=https://www.bbc.co.uk/news/business-16298773 |title=Hungary borrowing costs rise on junk downgrade |publisher=BBC |date=22 December 2011 |access-date=27 December 2011}}</ref><ref name="guardian-20111225">{{cite news |url=https://www.theguardian.com/commentisfree/2011/dec/25/hungary-playing-chicken-editorial |title=Hungary: playing chicken |newspaper=The Guardian|date=25 December 2011 |access-date=27 December 2011}}</ref><ref name="bbc-20120106">{{cite news|url=https://www.bbc.co.uk/news/business-16446307|title=Third ratings agency gives Hungary a junk credit rating|publisher=BBC|date=6 January 2012|access-date=9 January 2012}}</ref> In part this is because of political changes creating doubts about the independence of the [[Hungarian National Bank]].<ref>[https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2944875 Terminal Risks for Independent Fiscal Institutions: Lessons from IFIs in Hungary and Venezuela]. Social Science Research Network (SSRN). Accessed 18 July 2017.</ref><ref name="bbc-20111222" /><ref name="guardian-20111225" />

European Commission President [[José Manuel Barroso]] wrote to Prime Minister [[Viktor Orbán]] stating that new central bank regulations, allowing political intervention, "seriously harm" Hungary's interests, postponing talks on a financial aid package. Orbán responded "If we don't reach an agreement, we'll still stand on our own feet."<ref name="bloomberg-20111230" />
	
The [[European Commission]] launched legal proceedings against Hungary on 17 January 2012. The procedures concern Hungary's [[Hungarian National Bank|central bank law]], the retirement age for judges and prosecutors and the independence of the data protection office, respectively.<ref>[http://www.politics.hu/20120117/barroso-says-unwillingness-of-hungary-to-make-changes-pushes-ec-to-act-against-budapest/ Barroso says unwillingness of Hungary to make changes pushes EC to act against Budapest] {{Webarchive|url=https://web.archive.org/web/20120118130832/http://www.politics.hu/20120117/barroso-says-unwillingness-of-hungary-to-make-changes-pushes-ec-to-act-against-budapest/ |date=18 January 2012}}, ''Politics.hu'', 17 January 2012; accessed 21 January 2012</ref><ref>[https://www.bbc.co.uk/news/world-europe-16593827 EU opens legal action against Hungary over new laws], [[BBC News]], 17 January 2012; accessed 21 January 2012</ref> One day later Orbán indicated in a letter his willingness to find solutions to the problems raised in the infringement proceedings.<ref>[http://www.politics.hu/20120118/orban-says-hungary-ready-to-cooperate-to-resolve-eu-infringement-issues/ Orbán says Hungary ready to cooperate to resolve EU infringement issues] {{Webarchive|url=https://web.archive.org/web/20131126172135/http://www.politics.hu/20120118/orban-says-hungary-ready-to-cooperate-to-resolve-eu-infringement-issues/ |date=26 November 2013}}, ''Politics.hu'', 18 January 2012; accessed 21 January 2012</ref> On 18 January he participated in plenary session of the [[European Parliament]] which also dealt with the Hungarian case. He said "Hungary has been renewed and reorganised under European principles". He also said that the problems raised by the European Union can be resolved "easily, simply and very quickly". He added that none of the EC's objections affected Hungary's new constitution.<ref>[http://www.politics.hu/20120118/hungary-reorganised-under-european-principles-says-pm/ Orbán tells European Parliament disputes a natural result of Hungarian government's "magnificent" efforts] {{Webarchive|url=https://web.archive.org/web/20131126170513/http://www.politics.hu/20120118/hungary-reorganised-under-european-principles-says-pm/ |date=26 November 2013}}, ''Politics.hu'', 18 January 2012; accessed 21 January 2012</ref><ref>[https://www.bbc.co.uk/news/world-europe-16613934 Hungary PM Orbán fights back in European Parliament], [[BBC News]], 18 January 2012; accessed 21 January 2012</ref>

Following the mild recession of 2012, the GDP picked up again from 2014, and based on the commission's Winter 2015 forecast it was projected to have accelerated to 3.3%. The more dynamic economic performance attributed to a moderately growing domestic demand and supported the growth of gross fixed capital formation. The surge (3.8% in the first half of 2014), however was only achieved via temporary measures and factors, such as the stepped-up absorption of EU-funds and the central bank's Funding for Growth Scheme, which subsidised loans for small-and medium-sized enterprises.<ref>Commission Staff Working Document: Country Report Hungary 2015 including an in-depth review on the prevention and correction of macroeconomic imbalances http://ec.europa.eu/europe2020/pdf/csr2015/cr2015_hungary_en.pdf</ref> The fundaments of growth didn't considerably change in 2015 as well – the government supported EU-fund transfers along with the moderately successful central bank loans of economic revitalization – fueled the fair GDP growth.