Hungary is pulling out of its economic crisis but remains vulnerable to financial contagion coming from other troubled central and east European states, says Gordon Bajnai, the prime minister.

Speaking amid renewed concerns about the possible regional impact of the financial turmoil in Latvia, Mr Bajnai this week told the Financial Times: “I think everybody in the region is vulnerable to contagion. First it was Hungary that may have been contagious for other countries in the region [last year]. Now we are not causing the infection but we might get infected.”