Xpat Opinion: Hungary’s Economic Sentiment Indicator: Highest In Europe

  • 16 Jan 2014 8:00 AM
Xpat Opinion: Hungary’s Economic Sentiment Indicator: Highest In Europe
Last Thursday, the European Commission’s Economic and Financial Affairs Directorate General released the December 2013 data for the EU’s Economic Sentiment Indicator. The Economic Sentiment Indicator, or ESI, is “a composite indicator made up of five sectoral confidence indicators” reflecting the level of confidence and optimism in each sector of the economy.

Which country has the highest score out of all the 28 member states? It’s Hungary, with 115.3, slightly above the UK (115.1) and Malta (110.9). Out of all the member states, according to the Commission’s ESI, Hungarians are most upbeat about future economic prospects.

Of course one month’s data is not enough to draw too many conclusions. But importantly, the basic trend line is positive. This latest ESI data is Hungary’s highest since October 2002, a time when Hungary was being referred to as an economic star pupil. What’s more, Hungary’s domestic economic sentiment index, according to GKI-Erste, has also reached a ten-year high.

This is another of several signs we’ve seen recently pointing to economic recovery. Businesses and consumers in Hungary responding to the Commission’s ESI questionnaire have added their vote of confidence. Not long ago, the Government was derided for its ’unorthodox’ economic policies. But at a time when much of the euro-zone is still in negative growth, Hungary is beginning to turn the corner.

By Ferenc Kumin

Source: A Blog About Hungary

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