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Post-Trianon Hungary possessed 90% of the engineering and printing industry of the pre-war Kingdom, while only 11% of timber and 16% of iron was retained. In addition, 61% of arable land, 74% of public roads, 65% of canals, 62% of railroads, 64% of hard surface roads, 83% of pig iron output, 55% of industrial plants, and 67% of credit and banking institutions of the former Kingdom of Hungary lay within the territory of Hungary's neighbours. New borders also bisected transport links – in the Kingdom of Hungary the road and railway network had a radial structure, with Budapest in the centre. Many roads and railways, running along the newly defined borders and interlinking radial transport lines, ended up in different, highly introvert countries. Hence, much of the rail cargo traffic of the emergent states was virtually paralysed. These factors all combined created some imbalances in the now separated economic regions of the former Monarchy.
Professor A. C. Coolidge.
The disseminating economic problems had been also noted in the Coolidge Report as a serious potential aftermath of the treaty. This opinion was not taken into account during the negotiations. Thus, the resulting uneasiness and despondency of one part of the concerned population was later one of the main antecedents of World War II. Unemployment levels in Austria, as well as in Hungary, were dangerously high, and industrial output dropped by 65%. What happened to Austria in industry happened to Hungary in agriculture where production of grain declined by more than 70%.[80] Austria, especially the imperial capital Vienna, was a leading investor of development projects throughout the empire with more than 2.2 billion crown capital. This sum sunk to a mere 8.6 million crowns after the treaty took effect and resulted in a starving of capital in other regions of the former empire.
The disintegration of the multi-national state conversely impacted neighbouring countries, too: In Poland, Romania, Yugoslavia, and Bulgaria a fifth to a third of the rural population could find no work, and industry was in no position to absorb them.
In comparison, by 1921 the new Czechoslovak state reached 75% of its pre-war production owing to their favourable position among the victors, and greater associated access to international rehabilitation resources.
With the creation of customs barriers and fragmented protective economies, the economic growth and outlook in the region sharply declined, ultimately culminating in a deep recession. It proved to be immensely challenging for the successor states to successfully transform their economies to adapt to the new circumstances. All the formal districts of Austria-Hungary used to rely on each other's exports for growth and welfare; by contrast, 5 years after the treaty, traffic of goods between the countries dropped to less than 5% of its former value. This could be attributed to the introduction of aggressive nationalistic policies by local political leaders.
