Editing Economy of Hungary (section)

===Great Recession===
Declining exports, reduced domestic consumption and fixed asset accumulation affected Hungary during the [[Great Recession]], making the country enter a severe recession of −6.4%, one of the worst economic contractions in its history.

On 27 October 2008, Hungary reached an agreement with the [[IMF]] and [[EU]] for a rescue package of US$25 billion, aiming to restore financial stability and investors' confidence.<ref name="8078hungary_receives_res">{{cite news |url=https://www.theguardian.com/business/2008/oct/29/hungary-economy-imf-eu-world-bank |title=Hungary receives rescue package, with strings attached |author1=Kate Connolly |author2=Ian Traynor |date=29 October 2008 |newspaper=The Guardian|access-date=18 January 2010}}</ref>

Because of the uncertainty of the crisis, banks gave less loans which led to a decrease in investment. This along with price-awareness and fear of bankruptcy led to a fallback in consumption which then increased job losses and decreased consumption even further. Inflation did not rise significantly, but real wages decreased.<ref name="7679economy_and_society_">{{cite web |url=http://portal.ksh.hu/pls/ksh/docs/eng/xftp/gyor/jel/ejel20903.pdf |title=Economy and Society, January–March 2009 |publisher=Hungarian Central Statistical Office |access-date=18 January 2010}}</ref>

The fact that the euro and the Swiss franc are worth a lot more in forints than they were before affected a lot of people. According to The Daily Telegraph, "statistics show that more than 60 percent of Hungarian mortgages and car loans are denominated in foreign currencies".<ref name="9940global_financial_cri">{{cite news |url=http://www.allbusiness.com/economy-economic-indicators/economic-indicators/11965908-1.html |title=Global Financial Crisis: Hungary |author=Damien Mc Elroy |date=26 February 2009 |newspaper=The Daily Telegraph|location=London |access-date=18 January 2010}}</ref> After the election in 2010 of the new [[Fidesz]]-party government of Prime Minister [[Viktor Orbán]], Hungarian banks were forced to allow the conversion of foreign-currency mortgages to the forint.<ref name="bloomberg-20111230">{{cite news |url=https://www.bloomberg.com/news/2011-12-30/hungarian-lawmakers-approve-central-bank-law-in-snub-imf-european-union.html |title=Hungary's Bailout Chance Wanes as Lawmakers Snub IMF, EU Over Central Bank |author=Zoltan Simon |publisher=Bloomberg |date=30 December 2011 |access-date=30 December 2011}}</ref> The new government also nationalized $13 billion of private pension-fund assets, which could then be used to support the government debt position.<ref name="bloomberg-20111222">{{cite news |url=https://www.bloomberg.com/news/2011-12-22/hungary-top-court-may-rule-on-pension-fund-nationalization-case.html |title=Hungary Top Court May Rule on Pension Fund Nationalization Case |author=Zoltan Simon |publisher=Bloomberg |date=22 December 2011 |access-date=30 December 2011}}</ref>