Hungary has been hit hard by the European financial problems and recently, a member of the newly installed government warned that Hungary could face similiar problems that Greece is experiencing or even default on its debt. The situation has been created by an unemployment rate at 11.4% along with an economy that shrank by 6.3% coupled with high budget deficits.
The currency of Hungary is the Forint (HUF) and I received 202 HUF for each dollar that I exchanged. Incidently, I was very careful with the 10,000 HUF bill I received at the exchange window. Hungary for several years has been close to joining the Euro Zone however it still does not meet the criteria neccessary to become integrated. I have to say after exchanging four types of different currency in less then 10 days, (and trying to figure out budgeting and expenses in four currencies) I think the Euro Zone is a good thing. Hungary plans to accomplish integration in the Eurozone over the next couple of years, assuming the Euro survives the current turmoil. This would possibly be a huge advantage for Hungary to attract foreign investment. When comparing the economic conditions in Austria, The Czech Republic, and Hungary it is apparent while traveling around Budapest that conditions lag behind both Austria and The Czech Republic, however I believe there remains tremendous potential within the capital city.
http://www.nytimes.com/2010/06/05/world/europe/05hungrary.html?ref=hungary
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