Economic Country Review
income nearly twothirds that of the EU25 average. The private sector accounts for more than
80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with
cumulative foreign direct investment worth more than $70 billion. In late 2008, Hungary's
impending inability to service its shortterm debt brought on by the global financial crisis led
Budapest to obtain an IMF/EU/World Bankarranged financial assistance package worth over $25
billion. The global economic downturn, declining exports, and low domestic consumption and
fixed asset accumulation, dampened by government austerity measures, resulted in an economic
contraction of 6.3% in 2009. In 2010 the new government implemented a number of changes
including cutting business and personal income taxes, but imposed "crisis taxes" on financial
institutions, energy and telecom companies, and retailers
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