The economic and political risk index has dropped to an all-time low in Hungary in the past year and a half, a country report by the think tank Political Capital (PC) and the economic weekly Figyelo, published on Wednesday, stated.
The reason for the political risk growth is primarily attributed to political instability, xenophobia, as well as thriving corruption in central bureaucracy and in local governments, PC researchers said.
The economic risk index has also hit an all-time low, as Hungary is now “where it belongs: to the markets with low growth potential, indebted, hence considered risky”, the report said.
Hungary has been in a permanent state of political instability, PC’s chief analyst, Attila Gyulai said, and cited the 23 changes in ministerial posts since 2006.
Regarding the issue of ethnic conflicts, PC head Peter Kreko said that prejudices had not increased, but “they are more easily manifested”. He added that he thought that the majority of people were convinced of the existence of “Gypsy crime”.
The political and the economic risk index is an indicator of a country’s political, social and economic stability. The lower indicator denotes higher risk.
