HUNGARY: A Year of Economic Conlrovorsy

IN THE LAST SEVERAL months, the Hungarian government has switched the course of economic reform from gradualism to quasi-shock therapy in order to combat severe internal and external macroeconomic imbalances and a staggering foreign debt. Due to a deteriorating international image, Hungary saw its share of the total direct foreign investment in Central and Eastern Europe drop considerably. Economic risk analysts had also given the country a relatively bad ranking for the year.