Hungarian Ministry Assures Stability in National Debt Amid Economic Concerns
The National Economy Ministry emphasizes stable economic fundamentals and declining public debt ratios compared to EU averages.
The Hungarian Ministry of National Economy has issued a statement asserting that there is no risk associated with Hungary's national debt.
The ministry emphasized that the fundamental economic indicators of Hungary are stable, with a sufficiently diversified currency composition and ownership structure of the public debt.
It noted that the financing of state operations is both secure and stable.
This assessment is corroborated by international credit rating agencies that continue to recommend Hungary as an investment destination.
The ministry highlighted that, according to the Hungarian Fundamental Law, only budget proposals that will reduce the national debt compared to the previous year may be submitted to the National Assembly.
The Stability Act provides additional guarantees to ensure that the declining debt ratio is maintained during budget execution, with oversight by the independent Fiscal Council.
According to the ministry, Hungary's national debt has significantly decreased since 2010 and has remained consistently below the European Union average, even during the challenging years of the COVID-19 pandemic and the subsequent war crisis.
As per the European Commission’s analysis for the autumn of 2024, the average debt ratio in the EU is projected to be 82.4% by the end of 2024, while Hungary's debt is anticipated to reach 74.5% of GDP during the same period.
The ministry pointed out that several EU member states have significantly higher debt ratios, including Italy (136.6%), France (112.7%), Belgium (103.4%), Spain (102.3%), and Finland (82.6%).
Continuing the practice established in previous years, the ministry stated that the government plans for a decreasing deficit and national debt in the preparation of the 2026 budget.
Overall, the ministry concludes that 'the relevant assessment of the European Commission reflects the current fiscal discipline upheld in Hungary.'
The ministry emphasized that the fundamental economic indicators of Hungary are stable, with a sufficiently diversified currency composition and ownership structure of the public debt.
It noted that the financing of state operations is both secure and stable.
This assessment is corroborated by international credit rating agencies that continue to recommend Hungary as an investment destination.
The ministry highlighted that, according to the Hungarian Fundamental Law, only budget proposals that will reduce the national debt compared to the previous year may be submitted to the National Assembly.
The Stability Act provides additional guarantees to ensure that the declining debt ratio is maintained during budget execution, with oversight by the independent Fiscal Council.
According to the ministry, Hungary's national debt has significantly decreased since 2010 and has remained consistently below the European Union average, even during the challenging years of the COVID-19 pandemic and the subsequent war crisis.
As per the European Commission’s analysis for the autumn of 2024, the average debt ratio in the EU is projected to be 82.4% by the end of 2024, while Hungary's debt is anticipated to reach 74.5% of GDP during the same period.
The ministry pointed out that several EU member states have significantly higher debt ratios, including Italy (136.6%), France (112.7%), Belgium (103.4%), Spain (102.3%), and Finland (82.6%).
Continuing the practice established in previous years, the ministry stated that the government plans for a decreasing deficit and national debt in the preparation of the 2026 budget.
Overall, the ministry concludes that 'the relevant assessment of the European Commission reflects the current fiscal discipline upheld in Hungary.'
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