The Hungarian economy, which has not been able to keep up with the astronomic levels of growth witnessed just north of its border, in Slovakia, can soon look forward to much brighter times.

A number of Hungarian economists and the country’s finance ministry predict that investment in Central Europe’s second largest economy will expand noticeably between 2009 and 2010.

Ministry officials expect the number of investments to outperform consumption and growth in the economy over the course of the next 18 months and the country’s gross domestic product (GDP) will generally hover around a modest, but healthy 3.1 percent.

What is perhaps most impressive about the ministry’s prognosis is Hungary’s continued appeal in the eyes of both domestic and foreign investors. Investments are likely to increase by 7.5 percent over the course of the next two years, while consumption will climb by a much more modest 2.5 percent.

Even if Hungary’s relatively large economy posts less impressive gains than that of its smaller neighbour, Slovakia, the situation is more stable than in the United Kingdom and the United States, both of which are being battered by the continued credit crunch, an increasingly dreary housing market and a sense of uncertainty following the financial crisis that was unleashed on Wall Street earlier this month.

Hungary’s relative success can, in part, be attributed to the Hungarian government’s successfully managing of the country’s soaring account balance deficit, which stood at nearly 10 percent in 2006.

Since then, austerity measures have improved the country’s finances and investor confidence is now growing once again.