Following an upward trend in place for one year and a half, the seasonally adjusted GKI-Erste economic sentiment index reached a fifteen-year high in April 2014. Business expectations show improvement in June after a slight deterioration in May, but the consumer confidence index continued to decline this month. On the other hand, business and consumer optimism is still close to a multi-year high. The minor fall is seen to be a post-election correction, which has been also observed over the past years.
Over the past one year, Hungary’s default risk has improved significantly. In June 2013, CDS spread, the premium payable for protection against the risk of the Hungarian state’s default, was 342 basis points and following a downward trend this fell to 162 basis points by the end of June 2014.

For more informations please check the attached file on the right side of the page!

(Ministry for National Economy)