Page "Economy of Hungary" Paragraph 15

After Hungary's GDP declined about 18 % from 1990 to 1993 and grew only 1 %– 1. 5 % up to 1996, strong export performance has propelled GDP growth to 4. 4 % in 1997, with other macroeconomic indicators similarly improving.

These successes allowed the government to concentrate in 1996 and 1997 on major structural reforms such as the implementation of a fully funded pension system ( partly modelled after Chile's pension system with major modifications ), reform of higher education, and the creation of a national treasury.

Remaining economic challenges include reducing fiscal deficits and inflation, maintaining stable external balances, and completing structural reforms of the tax system, health care, and local government financing.

Recently, the overriding goal of Hungarian economic policy has been to prepare the country for entry into the European Union, which it joined in late 2004.