Hungary trade balance shows deficit for sixth month in a row

Hungary’s trade balance showed a deficit for the sixth month in a row in December, a second reading of data released by the Central Statistical Office (KSH) on Thursday shows.

The first reading of the data, released on February 8, had shown a surplus of 187 million euros for the month, but the second reading showed a deficit of 378 million euros. Hungary, an export-driven economy where trade surpluses are the norm, has had trade deficits every month since July. Exports rose by an annual 17.9 percent to 9.948 billion euros and imports climbed 26.6 percent to 10.326 billion euros in December.

Trade with other European Union member states accounted for 74 percent of Hungary’s exports and 71 percent of its imports. Hungary’s terms of trade deteriorated by 5.4 percent during the period as the forint weakened 2.3 percent against the euro and 10 percent to the dollar. For the full year, exports increased by 13.6 percent to 119.309 billion euros and imports rose by 18.2 percent to 117.413 billion euros. The trade surplus reached 1.897 billion euros, narrowing from 5.618 billion euros in 2020.

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Retail sales in Hungary rose by an annual 4.5 percent in January, slowing from 6.7 percent in the previous month, the Central Statistical Office (KSH) said on Thursday. Adjusted for calendar-year effects, retail sales rose by 4.1 percent. Adjusted food sales edged up 0.1 percent and non-food sales rose by 6.4 percent. Vehicle fuel sales climbed 10.7 percent.

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Source: MTI