Moody’s Ratings affirmed Hungary’s investment-grade sovereign rating, albeit with a negative outlook, at a scheduled review on Friday, the National Economy Ministry said in a statement.
Negative outlook for investments in Hungary
All three big credit rating agencies put Hungary in the investment-grade category, thanks to the country’s stable and resilient economy, the ministry said.
“Hungary’s financing position is stable and secure, and the government is committed to a disciplined fiscal policy and reducing the budget deficit and state debt levels,” it added.
That approach is reflected in the government’s 2025 budget bill which targets a reduction in the fiscal deficit to 3.7pc of GDP. The peacetime budget will contribute to returning the economy to a path of sustainable, high growth, the ministry said.
Hungary’s assessment on international financial markets is favourable, and Hungarian government securities remain popular. Strong investor and market confidence is demonstrated by successful securities auctions and inward FDI, the ministry said, pointing to big investments underway by Chinese companies such as battery makers CATL and SEMCORP and EV maker BYD.
Post-pandemic period was difficult
Hungary’s economy has emerged from a difficult period following the pandemic, the energy crisis and the protracted war in Ukraine, but the weakness of markets in Europe, especially the German economy, has weighed on exports. On the domestic front, indicators point to a turnaround with retail sales and tourism turnover on the rise, showing an increase in consumption, it added.
Government measures to bring down inflation have contributed to the domestic recovery, employment is high and purchasing power is set to continue to rise in 2025 supported by a three-year agreement on minimum wage increase, the ministry said.
The government aims to keep GDP growth over 3pc in 2025 by adopting a policy of economic neutrality and has drafted a New Economic Policy Action Plan that will boost purchasing power, ensure affordable housing and scale up SMEs with the launch of the Demján Sándor Programme, it added.
Finance Ministry also reacted
Moody’s Ratings has affirmed Hungary’s investment-grade sovereign rating, but changed the outlook from stable to negative because of the uncertain international environment and political disputes with Brussels, the Finance Ministry said on Friday.
Photo: MTI
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3 Comments
Oh, the “credit rating agencies” again… *rolls eyes*
They are unaccountable gangsters whose pronouncements are motivated by personal politics and gain. It’s institutionalized insider trading, at best.
This is NOT “newness” of News.
Hungary, it is accepted, from growing millions, inside Hungary, by Hungarians, from “all stations in life” – and throughout Europe and Globally, that the Economic & Financial “outlook” for Hungary is very seriously GRIM.
Hungary, through the Orban – Fidesz Governments “on-going” Policies, directed at the DISTILLATION of Democracy, that sees continual, the growing, the “hardening” of partnerships / relationships with Russia and China, this FACT, is playing out, adding to, the the DECLINE of Hungary, fuelling, feeding into – the HORRENDOUS “nadir” downwards trend, as a country, it is PLACED.
The FAILINGS of the Orban – Fidesz Government, over the period of 16 years, as there Government, being twice elected, our country, have been DELIVERED to a place of Economic & Financial ruination.
The growing acceptance of the Orban – Fidesz Governments “Toxic Cultures” – seen again, in past days, of the “moving on” of the long standing DISASTER on-going – he PROVES to Be – Mihaly Varga, the Minister of Finance, clearly is another ADDITION to display / exhibit – that the Orban led Fidesz Government are a Government, that HAVE “lost there way”.
Varga, over the course of 16 years, in the (2) positions of influence he has held, the longest period being as the Minister of Finance, he WEARS – “mightily” on his shoulders BLAME – for the DEVASTATIONAL place, the Economy, and its future GRIM outlook picture, represents in Hungary.
Vargas appointment, as the “incumbent” Governor of the Central Bank of Hungary – Unjustified / Undeserved.
The “pressurization ” – the growing DELUGE – of the Economic & Financial current position of Hungary, the “collapse” process of our Forint, its devaluation and worth, that INFLATION will continue, cost of living in Hungary – continue to RISE, the broadness of ramifications – this growing DELUGE – has had and is presently HAVING, what sooner than later, will through its POWER – it will DUMP – on Hungary, leaving us as a country – SLAUGHTERED.
History – Never Lies.
1939-1989 – then onto the DISASTEROUS years of the Gyurcsany “ill-fated” Government, the first of Victor Mihaly. Orban “attempts” as the Prime Minister of Hungary, then his “second” coming – these years in time, for Hungary, have NOT been – FRUITFUL.
Hungary – in 2024 – remains and deepens it-self, into the “Mood & Tones” as a country, that overall has been its ATMOSPHERE just as a starting point of 1939.
Hungary – under the Orban led Fidesz Government is represented by GLOOM.
Freedom, Liberty – having FREE un-inhibited CHOICE – being a country ” in practice” – that embraces, in it’s CREED of being a DEMOCRACY – that DIALOGUE is DOMINANT in a practice of a Government, that works with its PEOPLE, for its PEOPLE – then lastly for the betterment, the FUTURE of its COUNTRY – Hungary.
Hungary – we ARE not and it WORSENS.
Steiner if you don’t want to believe the assessment of Moody’s you have traders stampeding out of the forint and Hungarians themselves bailing out of their own currency as it goes down the hole of a Balkan toilet. I bet that you don’t hold your own savings in forints do you?