Hungary Returns to Growth
World Economy

Hungary Returns to Growth

The economic growth in Hungary has returned. Furthermore, the fluctuations have considerably declined as external and public debt has reduced. However, political risks continue to be high, while the Hungarian Forint is expected to stay weak, said Nordea Bank in a research note.
Hungary’s economy grew almost 3% in 2015. Furthermore, growth in consumer expenditure appears to be recovering. Compared with the level of consumer spending that continues to be lower than the levels seen before the global financial crisis, the moderate growth is not much impressive, noted Nordea Bank. Moreover, the investment level continues to be lower than the levels seen before the global financial crisis, in spite of strong growth recorded recently, Yahoo reported.
Meanwhile, in spite of certain slowdown registered in recent months, the external balance continues to rebound. Only exports component is the one that is currently much higher than the pre-global financial crisis level.
However, imports are constrained by a weak economy. Stable European funds inflows are aided by the current account balance.  Hence the Hungarian economy can continue to expand, given its still low levels. But a rebound might slightly impact external balances. “We see 2.5-3.0% growth this year driven to a larger extent by the domestic economy”, added Nordea Bank.
Meanwhile, Hungary’s credit rating was upgraded by Fitch by one notch to BBB- last week. The nation returned to its investment grade territory with Fitch. However, S&P and Moody’s still continue to rate the country one notch lower than investment grade. Moody’s will next review its rating in July, whereas S&P will review it in September.


Short URL : http://goo.gl/r18LRi
  1. http://goo.gl/rne5RO
  • http://goo.gl/E28SW4
  • http://goo.gl/z2i9P2
  • http://goo.gl/QSguls
  • http://goo.gl/qJz7Zd

You can also read ...

Poland to Maintain Solid Growth
Polish economy’s all significant macro fundamentals appear...
Zimbabwe is in arrears of nearly $1.8 billion  to the World Bank and ADB .
The International Monetary Fund Thursday said it was ready to...
King Khaled International Airport
Saudi Aramco may have grabbed the biggest headlines, but the...
While the tariff conflict may still be in its infancy,  global trade growth rate has almost halved.
The global economy will continue to expand strongly in the...
Imran Khan Says Economic Revival a Priority
Pakistan Prime Minister Imran Khan on Thursday said that the...
Wells Fargo Will Cut Workforce
Wells Fargo & Co said on Thursday it would reduce its...
Global Stocks Hit 6-Month High
World shares hit their highest levels in more than six months...
Premier Li Keqiang has  voiced confidence in China’s ability to overcome obstacles.
Chinese officials are shrugging off warnings that the trade...