Now Hungary Is In A Grave Economic Situation

Hungary now joins the growing band of European countries with withering debt problems as the Hungarian Prime Minister Viktor Orban says the nation’s economy is in a “grave situation.”

First Greece, then Spain, Italy, Ireland and Portugal have had to admit to growing sovereign debt problems as the Euro crumbles under the weight of Eurozone economic uncertainty. Now it seems that the Hungarian economy is also teetering on the brink.

Viktor Orban was even quoted as saying that a “default is not out of the question”.

The current Hungarian government only came into power in May and is now blaming the previous administration for understating the size of the country’s budget deficit.

“There is nobody in the country apart from the previous government who still says the budget deficit of 3.8% of gross domestic product can be reached,” said an official spokesman.

The revelations about the depth of the problems in the Hungarian economy has shaken the currency and equity markets. The revelations triggered a sharp fall by the Euro versus major rivals, driving the single currency to a four-year low versus the dollar and an all-time low against the Swiss franc.