Hungary in the IMD WCY 2010: Changes, Tendencies, Components

Kovács, O. (2010): Hungary in the World Competitiveness Yearbook 2010: Changes, Tendencies, Components. News of the Month, ICEG European Center, April-May 2010 pp. 9-13.

The newest WCY 2010 provides a wide range of information about the competitiveness snapshot of 58 countries. The global financial turmoil has hit the competitiveness potential of many countries in the post-Lehman period until 2010. Some countries rise and some fall back in the rankings. Hungary was able to manage its fiscal consolidation over four consecutive years in order to cement its credibility and financial opportunities. Therefore, in 2010 its competitiveness could attain a better position than a year before, contrary to the general trends in the Central- and Eastern European region. The inexorably arising standpoint is that after the era of the Great Moderation the Keynesian renaissance has occupied the major policy lines as a reaction to the financial crisis, but this smuggles unintended consequences into the system causing huge deficits and debts. Thus, in all probability the resurrection of the moderated policy will sooner or later topple down the intensive utilisation of Keynesian tools.