Confidence in the Hungarian economy has not been broken, and Standard & Poor’s has confirmed Hungary’s debt rating and continues to recommend it for investment, the Ministry of Economic Development told MTI on Friday evening.
Thanks to efficient and effective government measures, the Hungarian economy has become crisis-resistant and is standing on stable feet even in the current difficult situation. This is reflected in today’s report from Standard & Poor’s, which continues to recommend Hungary for investment with a stable outlook, thus reaffirming Hungary’s debt rating. It can be concluded that all major credit rating agencies rate Hungary as recommended for investment – They announced.
In his statement, Economic Development Minister Marton Nagy emphasized that Hungary’s finances are predictable, transparent and stable. Thanks to strict budget discipline, Hungarian public debt is decreasing, while its level is below the EU average. The double deficit has ended, and the sales volume of foreign trade products shows a surplus again.
In addition, international reserves have reached a historical level of 40.9 billion euros, that is, Hungary does not have as large international reserves as it had in November, and Hungary’s perception of international financial markets is favorable, so the country’s financial situation is stable and secure.
This is also demonstrated by continued international confidence, indicated by successful bond auctions and a steady flow of foreign direct investment. In addition to the Hungarian State Treasury, Eximbank and Magyar Fejlsztési this year also had a particularly successful bond issue, attracting more than $3 billion in funds from international investors, with great interest. The level of yields on government securities has declined significantly recently. Since June, for example, the yield on 5-year government securities has fallen by 2.4 percent. The ministry wrote that 2023 is the year to break inflation, and 2024 is the year to restore growth.
Inflation is declining at a good pace, with the government lowering it to single digits by October and to 7.9% by November, while the domestic economic environment is also showing an increasingly favorable picture.
Real wages are growing, job opportunities are full, while the number of job seekers has reached a historic low.
In the third quarter, the Hungarian economy expanded at the fourth-largest rate within the Union. They added that the Hungarian investment rate is one of the highest in the European Union in years, and this year will not be different, as the index may range between 26-27 percent.
The economic outlook continues to improve. 2024 will be a year of economic recovery, such that growth can return to the dynamic range of 4 percent. This will continue to catch up, and our country can take another step towards achieving 90% of EU development by 2030. For this reason, population consumption and corporate investment should increase, which is also supported by lower interest rates on loans, the Ministry of Economic Development announced.
