Along with Latvia, Denmark and Austria, Hungary is one of four EU member states where central government debt has been edging lower since 2011. International investors and credit rating agencies have also acknowledged the achievements of the Hungarian economy.

Thanks to the Government policy aimed at cutting debt, the debt-to-GDP ratio has been falling year after year and the Cabinet has also managed to keep fiscal deficit below 3 percent of GDP. The central government debt-to-GDP ratio was 77.3 percent last year and it will be 76.9 percent this year – according to estimates of both the Ministry for National Economy and the European Commission.  The Commission is prognosticating even lower debt levels for 2015 and 2016, at 76.4 percent and 75.2 percent of GDP, respectively. Therefore, the European Commission has in its forecast also confirmed that in the next years Hungary’s state debt will be on a declining path.

There are 18 EU member states which have achieved a deficit target of below 3 percent of GDP; Hungary’s fiscal deficit was the 13th lowest in the bloc (2013).

Foreign investors and credit rating agencies are also acknowledging achievements realized in stabilizing the Hungarian economy and lowering state debt. The fact that Hungary has exited the EDP was also due to a prudent economic policy.

(Ministry for National Economy)