Moody’s Investors Service affirmed Hungary’s Baa3 ratings with a stable outlook in a scheduled review on Friday.
Moody’s said robust growth, Hungarian authorities’ continued commitment to gradual fiscal consolidation, and “overall supportive institutional capacity” were the key drivers behind the rating action.
Moody’s projected Hungary’s GDP growth would reach 4.3pc in 2018 and 3.4pc in 2019.
The ratings agency acknowledged the effect of government policies aimed at stimulating domestic demand and noted the positive impact recently announced investments in the automotive sector would have on growth.
However, it said that the tight labour market poses a restraint for continued strong growth.
STEADY LABOUR SHORTAGE IN HUNGARY: JOBLESS RATE REACHES 3.8 PC
Hungary’s rolling average three-month jobless rate reached 3.8 percent in September, edging up from 3.7 percent in the previous month, but falling from 4.1 percent in the same period a year earlier, the Central Statistical Office said on October, read more here.