Hungary’s economic update: rising government deficit, PMI growth, and trade surplus increase

Hungary news – the latest data on economic indicators are now available:

Hungary govt sector deficit reaches 3.7pc of GDP in H1

Preliminary data released by the Central Statistics Office (KSH) on Tuesday show that Hungary’s government sector had a HUF 1,489 bn deficit in the first half, equivalent to 3.7pc of GDP.

Government sector revenue rose 8.3pc to HUF 16,825bn (EUR 42m), while expenditures increased 3.5pc to HUF 18,314bn (EUR 42m).

Revenue from social insurance contributions climbed by 14.1pc or HUF 511bn (EUR 1.29bn), and revenue from taxes on production rose by 7.4pc or HUF 470bn (EUR 1.18bn), while revenue from taxes on income increased by 17.5pc or HUF 462bn (EUR 1.16bn).

On the expenditure side, investment spending fell by 7.0pc or HUF 80bn, but interest expenditures climbed by 11.8pc or HUF 195bn.

Alone in the second quarter, the government sector deficit reached HUF 469bn, equivalent to 2.3pc of GDP, KSH said.

Hungary trade surplus reaches EUR 167m in July

Hungary had a EUR 167m trade surplus in July, according to the second reading of data released by the Central Statistics Office (KSH) on Tuesday.

Exports climbed 4.8pc year-on-year to EUR 11.815bn. Imports rose 8.8pc to EUR 11.648bn.

Trade with other European Union member states accounted for 74pc of Hungary’s exports and 70pc of its imports during the month.

Hungary’s terms of trade deteriorated 1.7pc during the period as the forint weakened 3.6pc against the euro and 5.6pc to the dollar.

For the period January-July, Hungary had a trade surplus of EUR 7.937bn. Exports fell 4.3pc to EUR 85.144bn and imports declined 8.4pc to EUR 77.208bn.

read also: Hungary’s factory gate prices see notable rise in August

Hungary PMI rises close to 50-point mark

Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) stood at 49.7 points in September, rising from 47.7 points in August, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim) said on Tuesday.

The PMI was below the 50-point threshold that signals expansion in the manufacturing sector.

Among the PMI sub-indices, the new orders index rose and was over the 50-point mark.

The production volume index increased and indicated expansion.

The employment index fell and continued to show a contraction.

The delivery times index rose.

The gauge of purchased inventories increased but was still under the 50-point mark.

read also: Morgan Stanley predicts euro could reach 410 forints amid worsening economic outlook

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