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Hungary growth is lowest in Eurozone

According to the latest data available, Hungary saw only 0.9 per cent growth in the economy in 2007, which is significantly below the government's predictions. It also makes for the slowest growth in the 27 nations making up the EU. Only 2.8 per cent of growth is likely for 2008 with 4 per cent likely for 2009.

This is a key report because as some investors have pointed out, the government is making it difficult for investors to make significant investments here. The European Union financial ministers say the government needs to cut spending to meet the goals in place for the deficit, but increasing taxes are another problem that needs to be faced as well.

As taxes have increased, foreign investors have turned away, favouring other neighbouring countries where the costs of investing in both markets and property are more affordable. Countries like Slovakia are more affordable than they were just a few years ago, making for better investment potential.

Hungary is still a large property investor draw, especially because of the affordability of property here. Additionally new developments continue to come into the country, making it better suited for meeting demand.

As the country works to improve deficit through budget cuts, it will improve its appearance to investors. If the country continues to cut the deficit as it did in the last year, it may see marked improvements.

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