Editing Economy of Hungary (section)

===Hungary's economy since 1995===
{{update|section|GDP charts only go to 2010|date=July 2022}}
[[File:Gdp inflation activepopulation hungary.png|thumb|right|180px|alt=Chart showing GDP growth, inflation, and active population in Hungary 1990–2010.|GDP growth, inflation, and active population in Hungary 1990–2010]]
[[File:Gdppercapita hungary.png|thumb|right|180px|alt=Chart showing GDP per capita in USD at 2000 market prices in Hungary 1991–2010.|GDP per capita in USD at 2000 market prices in Hungary 1991–2010]]
[[File:EXCEL 2020-09-14 20-16-50.png|alt=General government gross debt in the Czech Republic, Poland, Hungary, Romania, Slovakia, EU27, and the Euro zone.|thumb|180x180px|General government gross debt in Hungary amongst other countries and the EU]]
Reaching 1995, Hungary's fiscal indices deteriorated: foreign investment fell as well as judgement of foreign analysts on economic outlook.<ref name="bokrosinterview">{{cite web|url=http://www.worldbank.org/html/prddr/trans/MayJune95/pgs12-15.htm|title=Hungarian Finance Minister Lajos Bokros Explains His Package|publisher=The World Bank|access-date=12 November 2009}}</ref> Due to high demand in import goods, Hungary also had a high trade deficit<ref name="exttrade">{{cite web|url=http://portal.ksh.hu/pls/ksh/docs/eng/xstadat/xstadat_annual/tabl3_05_02ie.html |title=External trade by groups of countries in HUF (1991–2003) |publisher=KSH |access-date=12 November 2009}} {{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref> and budget gap, and it could not reach an agreement with the [[IMF]], either.<ref name="bokrosinterview"/><ref name="vg_hu">{{cite web|url=http://vg.hu/gazdasag/vg_online/gazdasag_-_belfold/081215_bokros_252890|title=Viták kereszttüzében: a Bokros-csomag (The Bokros Package in the Crossfire)|publisher=Világgazdaság Online|language=hu|date=15 December 2008|access-date=12 November 2009|url-status=dead|archive-url=https://web.archive.org/web/20100316135826/http://www.vg.hu/gazdasag/vg_online/gazdasag_-_belfold/081215_bokros_252890|archive-date=16 March 2010}}</ref>
After not having a [[minister of finance]] for more than a month, prime minister [[Gyula Horn]] appointed [[Lajos Bokros]] as Finance Minister on 1 March 1995. He introduced a string of austerity measures (the "[[Bokros package|Bokros Package]]") on 12 March 1995 which had the following key points: one-time 9% devaluation of the forint, introducing a constant sliding devaluation, 8% additional customs duty on all goods except for energy sources, limitation of growth of wages in the public sector, simplified and accelerated privatization. The package also included welfare cutbacks, including abolition of free higher education and dental service; reduced family allowances, child-care benefits, and maternity payments depending on income and wealth; lowering subsidies of pharmaceuticals, and raising retirement age.

These reforms not only increased investor confidence,<ref name="usgovcikk">{{cite web|url=https://2009-2017.state.gov/r/pa/ei/bgn/26566.htm|title=Background Note: Hungary|publisher=Bureau of Public Affairs: Electronic Information and Publications Office|date=June 2009|access-date=12 November 2009}}</ref> but they were also supported by the IMF and the World Bank,<ref name="konyv">{{cite book|url=https://books.google.com/books?id=n3cBtQz7A4MC&q=protest%20against%20bokros%201995&pg=PA98
|title=Privatizing pensions: the transnational campaign for social security reform|author=Mitchell A. Orenstein|publisher=Princeton University Press|year=2008|access-date=12 November 2009|isbn=978-0-691-13697-4}}</ref> however, they were not welcome widely by the Hungarians; Bokros broke the negative record of popularity: 9% of the population wanted to see him in an "important political position"<ref name="median_bokros">{{cite web|url=http://www.median.hu/object.289bbab9-6e1c-4b75-a62d-cb90550284be.ivy|title=Romló közhangulat, stabilizálódó Fidesz-előny (Deteriorating Public Morale, Fidesz's Advantage Stabilizing|publisher=Medián|language=hu|date=14 February 2007|access-date=12 November 2009|archive-date=16 February 2007|archive-url=https://web.archive.org/web/20070216025712/http://www.median.hu/object.289bbab9-6e1c-4b75-a62d-cb90550284be.ivy|url-status=dead}}</ref> and only 4% were convinced that the reforms would "improve the country's finances in a big way"<ref name="bokrosinterview"/>

In 1996, the Ministry of Finance introduced a new pension system instead of the fully state-backed one: private pension savings accounts were introduced, which were 50% social security based and 50% funded.<ref name="konyv"/>

In 2006 Prime Minister [[Ferenc Gyurcsány]] was reelected on a platform promising economic "reform without austerity".
However, after the elections in April 2006, the Socialist coalition under Gyurcsány unveiled a package of austerity measures which were designed to reduce the budget deficit to 3% of GDP by 2008.<ref name=":2">{{Cite book |last=Inc |first=IBP |url=https://books.google.com/books?id=vU-qCwAAQBAJ&dq=In+2006+Prime+Minister+Ferenc+Gyurcs%C3%A1ny+was+reelected+on+a+platform+promising+economic+%22reform+without+austerity%22.+However%2C+after+the+elections+in+April+2006%2C+the+Socialist+coalition+under+Gyurcs%C3%A1ny+unveiled+a+package+of+austerity+measures+which+were+designed+to+reduce+the+budget+deficit+to+3%25+of+GDP+by+2008.&pg=PA40 |title=Hungary Investment and Business Guide Volume 1 Strategic and Practical Information |date=2015-09-11 |publisher=Lulu.com |isbn=978-1-5145-2857-0 |language=en}}</ref>

Because of the austerity program, the economy of Hungary slowed down in 2007.<ref name=":2" />