Fitch Ratings affirmed that Hungary’s government bonds are recommended for investment, with a stable outlook. Fitch restored Hungary’s investment-grade rating in May.

Fitch Ratings mentioned among positive factors that the current account has been posting significant surpluses for years and this has helped reduce external debt and financial exposure. Fitch also sees a gradual decrease in the general government debt ratio in coming years and it confirmed the earlier GDP growth estimate of 2.1 percent for 2016. The agency is also expecting economic growth to accelerate in 2017 – in line with Government prognoses – and result in employment and consumption growth.

In order to underpin the economy’s good performance and improve competitiveness, the Government is proposing, among others, a wage increase and tax reduction scheme as of 2017.

Current economic conditions and the future outlook of the Hungarian economy warrant further improvement in credit ratings. Market expectations also confirm this assumption, as yields on five-year Hungarian government bonds are below those of Poland, although the country’s rating is three notches above Hungary’s.

(Ministry for National Economy)