Fitch Improves Hungary Rating
Fitch Improves Hungary Rating

Fitch Improves Hungary Rating

Fitch Improves Hungary Rating

Fitch Ratings revised the outlook on Hungary’s Long-term foreign- and local-currency issuer default ratings to “positive” from “stable” and affirmed the IDRs at “BBB-”.
Among the key rating drivers to which Fitch assigned a “high” weight were the “marked improvement” in Hungary’s net external debt position, to an estimated 9% of GDP in 2017 from 53% in 2014; and the country’s current-account surplus, which averaged 3.7% of GDP in 2014-2016, MTI reported.
Fitch assigned a “medium” weight to a steady decline in Hungary’s state debt relative to GDP and a reduction in non-residents’ holdings of that debt; an acceleration in GDP growth, to an expected 3.7% in 2017 and 3.5% in 2018, up from 2.2% in 2016, driven mainly by domestic demand but also by recovering investment; and improved banking sector liquidity, profitability and asset quality.
Fitch said that Hungary’s GDP per capita and governance indicators are higher than the “BBB” medians, reflecting the country’s greater economic development and integration with western Europe, and “Doing Business” indicators are also stronger than its peers.
On the other hand, GDP growth volatility has been higher than peers, and unorthodox policy moves in the past and a high regulatory burden have affected private investment, it added.
Fitch noted that polls predict the incumbent ruling Fidesz party will win general elections to take place in April 2018, “suggesting policy continuity”. Fitch also pointed out public tensions between Hungary and the European Union and said a “serious deterioration in the relationship could have potential adverse consequences on the economic outlook and government finances in the medium- to long-term”.

Short URL : https://goo.gl/pXCz9D
  1. https://goo.gl/jzAEdK
  • https://goo.gl/9nrJwG
  • https://goo.gl/S9ezGN
  • https://goo.gl/2z3jYv
  • https://goo.gl/zQxKbs

You can also read ...

Singapore PM Says Economy Needs Restructuring
Singapore’s economic growth could exceed 3% in 2017, higher...
World GDP is expected to advance 3.5% in 2017—its best year since 2011—and 3.7% in 2018.
Nearly 10 years after the financial crisis brought the global...
Supporters of EU-Mercosur Free-Trade Pact Push for Deal
Supporters of a free trade pact between the EU and the...
Kuwait Needs $100b Over 5 Years to Cover Deficit
Kuwait will need $100 billion of additional financing over the...
Emmanuel Macron (L), French Labor Minister Muriel Penicaud (C) and Jean-Claude Juncker.
The EU is trying to present itself as more socially just,...
China to Help Shortfalls in Pension Funds
China on Saturday announced a pilot program to help pension...
The OECD believes that tax evasions cost governments around the world as much as $240 billion a year in lost revenue.
They have revolutionized the way people live, but are US tech...
Few Signs of Progress in NAFTA Talks
Negotiations in Mexico to update NAFTA have not made much...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.