Hungary is headed for an extremely tough year when neither the budget nor GDP will likely meet the government’s already significantly reduced projections. Orbán and Fidesz insist that everything is all right, but their dogged refusal to acknowledge reality only serves to stoke fears that they are not on top of things. While ignorance is one explanation for the government’s self-congratulatory tone, there is another, more rational interpretation: it has yet to find a way to circumvent the constitutional requirement that forbids raising the national debt. Either way, the government’s failure to address the economic problems bodes ill for the national economy’s prospects in the near future.

Policy Solutions' analysis on Hungary's worsening economic outlook can be downloaded from here.