ZH
IT
DE
HR
NL
FR
JA
RO
RU
ES
TR
Bad news: Hungary downgraded to negative by top credit rating agency
International credit rating agency Fitch Ratings has downgraded Hungary’s outlook from stable to negative, keeping the country just one notch above non-investment, or “junk”, grade.
The sovereign rating remains at BBB, but the shift in outlook signals mounting concerns over Budapest’s fiscal direction, political unpredictability and weakening economic performance ahead of the 2026 parliamentary elections.
Fitch’s latest review, released late on Friday, warns that without credible and immediate corrective action, Hungary risks slipping into speculative territory. Such a downgrade would increase the cost of financing state debt and could deter institutional investors who avoid countries rated as junk by two major agencies.
Table of Contents
Rising deficits and election spending trigger alarm
At the heart of Fitch’s concerns is the widening budget deficit, fuelled partly by a new wave of pre-election spending. The agency now expects Hungary’s deficit to reach 5% of GDP this year, in line with the government’s revised target, but to worsen to 5.6% in 2025—notably higher than the typical 3% deficit seen among other BBB-rated countries.
According to HVG‘s article, many of the government’s welfare measures—such as extended income-tax exemptions for mothers, an additional monthly pension payment despite insufficient pension-fund coverage, and expanded family tax allowances—are set to place lasting pressure on the budget.
According to Fitch, these steps will amount to 0.3% of GDP this year but could rise to as much as 1.2–2.1% next year, depending on the calculation.
Fitch also points to the extension of sectoral “windfall taxes” and higher burdens placed on banks as further signs of fiscal loosening. The analysts caution that additional spending measures may appear in the months leading up to the vote, continuing what they describe as a pattern of “campaign-driven fiscal expansion”.
Unpredictable policy environment undermines confidence
One of the strongest criticisms in the report concerns the government’s frequent and unpredictable adjustments to its budget targets and economic policy. Fitch argues that this undermines fiscal credibility, increases risk, and complicates long-term planning for investors.
The agency highlights that Hungary is unlikely to achieve a balanced primary budget (excluding interest payments). Instead, it forecasts a primary deficit of 0.4% this year and 1.4% in 2025, which could push the country’s debt ratio back onto an upward trajectory. Government officials continue to insist that public debt will stabilise at 73.5% of GDP, but Fitch projects an increase to 74.6% by 2027.
Fidesz is leading Hungary to the inevitable end called bankruptcy.
Everyone but Larry and his ilk knows that these “agencies” are a law unto themselves. They ultimately operate on political bases and it’s all a self-fulfilling prophecy: downgrade a country, which spooks investors, investors pull out their assets, economy tanks. We’ve seen that scenario play out dozens of times all over the world including in Europe.
Larry and his fellow travelers would also do well to survey the performance of the economies led by the globalist-socialist-fascist pathetic little puppets in Western (and Central) Europe they’re so enamored of. They are bombing. All but a handful are contracting in real terms, when you take inflation into account. Pathetic. If anyone seriously thinks that a Brussels’ patsy like Magyar would do anything better for the economy (and let’s not even mention any other aspect of governance!), then they need their head examined. Actually, scratch that; they need to be put in a padded room because they are a danger to themselves and others.
DOOMED, through the gargantuan FAILINGS of Victor Mihaly. Orban .
Hungary, come Spring of 2026 the DOWNFALL of Victor Mihaly. Orban and his Fidesz Government – we know NOW our country is NOT healthier progressive a better country all-round through the name – Victor Mihaly. Orban.
We know through the failings over the course of the past (16) sixteen years – the “second” coming of Orban as the Prime Minister of Hungary, that we have been DELIVERED into a “new age darkening abyss” that THREATENS – Endangers our FUTURE.
Victor Mihaly. Orban has FAILED dismally millions upon millions of Hungarians from “all stations in life”.
Greed, Corruption, Selfishness and EXPLOITATION continuous “in practice” aimed at directly the people of Hungary.
WHY are their in an “ageing” decreasing population in Hungary some 1.2 million Hungarians living in POVERTY ?
Hungary – across the board FAILED, abused, treated with contempt driven by and DELIVERED by – Victor Mihaly. Orban and his Fidesz Government.