Standard and Poor’s upgrades its outlook with relation the Hungarian economy.

Fitch decided in favour of reinforcing its existing evaluation.

"The upgrade reflects Hungary’s sound growth prospects, supported by high private savings and real wage gains sustaining domestic demand, as well as the ongoing expansion of export capacity in the automotive and services sectors," S&P said in its justification for the decision. S&P highlighted the fact that the rate of economic growth of around 5 percent produced by the Hungarian economy over the past two years is one of the highest in the European Union.

According to the rating agency’s expectations, this figure will decrease to around 3.5 percent in 2020, which may still be regarded as outstanding parallel to strong domestic demand and the government’s supportive economic policy. The credit rating agency welcomed the significant debt rate reduction, which is coupled with a healthier debt structure and fiscal discipline. Also behind S&P’s positive decision lies Hungary’s strong external competitiveness, its resistant, export-driven economy and the low rate of private sector debt.

S&P’s upgrade for its outlook regarding Hungary’s credit rating, which was improved to BBB in February 2019, also means there is a much greater chance of a further upgrade over the next two years.

(Ministry of Finance)