Hungary’s trade deficit climbed very high

Hungary had a 471 million euro trade deficit in June, a first reading of data released by the Central Statistical Office (KSH) on Monday shows.

The data show exports rose by an annual 13.0 percent to 11.873 billion euros, while imports increased by 24.1 percent to 12.344 billion euros.

For the period January-June, Hungary’s trade deficit reached 2.158 billion euros. Exports rose by 16.2 percent to 69.304 billion euros and imports climbed 27.4 percent to 71.462 billion euros.

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Magyar Bankholding chief analyst Gergely Suppán said the deficit for the month was “significantly larger” than expected, following a 96 million euro gap in May. Higher industrial output and factory gate prices are supporting exports, but strong demand and dearer commodities and energy prices are lifting imports, he added.

A slowdown in investment volume and consumption, paired with new production capacity and an easing of the semiconductor shortage, could improve the trade balance in the coming months, Suppán said.