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Will economic crisis hit Poland? [38]
Why economic crisis hit Hungary so hard but not Poland?
I can provide some light on the question:
In Hungary since 2006, 90% of new mortgages have been taken in hard currency because they offered much lower interest than the forint denominated. Forint being weak means higher interest payments.
In Hungary public debt is 60% GDP whereas in Poland it is 40%. The strong Polish economy has provided the government with good tax revenues, thus kept budget deficits low.
The Baltic states, although having troubles as well, have very little public debt and public finances are solid.
The source for these blurbs has been The Economist, October 25th 2008, "Who's next?".