The agency maintained the country’s rating with stable outlook.

In the analysis accompanying the decision, S&P stressed that that Hungarian labour force was well educated and competitive, and the export structure was balanced. Improving domestic consumption, declining unemployment, the utilization of EU funds and the central bank’s lending programme have also driven economic growth.  S&P estimates that the Hungarian economy is set to expand by 3 percent in 2015 and general government budget deficit to be around 2.4 percent, which projections are in line with the Government’s expectations.

According to the credit rating agency, Hungary’s vulnerability to external shocks has diminished, thanks mainly to the conversion of household loans and the gradual increase of forint-denominated government debt. As a result of these factors as well as of low inflation and a favourable current account balance, Hungary is one of the least vulnerable emerging market countries.

In the remainder of the year, S&P does not plan any more revisions concerning Hungary’s credit rating.

(Ministry for National Economy)