Budapest (MTI) – Fitch Ratings on Friday affirmed Hungary’s Long-term foreign currency Issuer Default Rating (IDR) at ‘BB+’ and its local currency IDR at ‘BBB-‘ with stable outlooks.
Fitch projected that Hungary’s economic growth would come in at 3.2 percent this year but slow down in 2015. Hungary’s budget deficit would be 2.9 percent of GDP this year, and 2.8 percent and 2.7 percent in 2015 and in 2016, respectively, the report said. This year’s higher deficit was attributed to election-related measures affecting the budget.
Fitch also reported that Hungary’s public debt would fall from 77.3 percent of GDP in 2013 to 76.4 percent by 2016.
Fitch said a marked drop in unemployment rates would help lift consumption, but it expected the economy would grow by 2.3 percent in 2015 due to European Union funding drying out at the end of the financial cycle.
Hungary’s economy ministry said Fitch had acknowledged Hungary’s positive undertakings over the past few years by affirming the credit ratings. Fitch has given positive feedback on Hungary’s growth outlook, employment market and balance indicators which would help bring down debt and reduce the country’s vulnerability, the ministry said in a statement.