Standard and Poor's Report Affirms Hungary as a Favorable Investment with Stable Outlook
According to the latest report by Standard and Poor's, Hungary continues to be recommended for investment, exhibiting a stable outlook, a sign that the Hungarian economy stands on solid ground, as per the Ministry of National Economy.
The ministry highlighted in a statement, "There's strong confidence in Hungary, evidenced by its investment-grade status across major credit rating agencies, including Standard and Poor's, Moody's, and Fitch Ratings."
The report underlines Hungary's favorable position in international financial markets, backed by robust investor and market confidence, which is further supported by successful bond auctions and the continuous influx of foreign direct investment:
- Among others, the largest German automotive manufacturers have made significant investments in Hungary. Moreover, BYD, a leading Chinese electric vehicle manufacturer, has chosen Hungary as its first European manufacturing base for electric vehicles.
- Hungarian government securities remain popular both in international markets and among Hungarian citizens, as demonstrated by the record-breaking volume of retail government securities, which reached over 10.76 trillion forints by the end of March.
- The country's financial situation is stable and secure. The government is dedicated to reducing budget deficits and public debt, having successfully eliminated the twin deficit, while Hungary's trade balance consistently shows improvement.
- Since 2010, the Hungarian economy has established a stable foundation, with 1 million new jobs created, pushing the employment numbers over 4.7 million. Concurrently, the number of registered jobseekers has hit an all-time low.
The Ministry of National Economy also noted that "the government's effective measures have combated inflation caused by the war and misguided sanctions from Brussels," leading to dynamic real wage growth over the past half year. As a result, retail sales are on the rebound, with continual growth in the first two months of 2024, increasing by 0.6% in January and 1.1% in February compared to the previous year.
Following the successful curtailment of inflation, the government plans to reignite and further accelerate economic growth this year, promising that once the war concludes, Hungary will reclaim its status as one of Europe's fastest-growing economies. This ambition translates into projected GDP growth of 2.5% in 2024 and 4.1% in 2025.
"The government is working towards ensuring that by 2030, Hungary's development reaches 90% of the European Union average. To achieve this, the Ministry of National Economy has developed a new competitiveness strategy," the statement concludes.
The report underlines Hungary's favorable position in international financial markets, backed by robust investor and market confidence, which is further supported by successful bond auctions and the continuous influx of foreign direct investment:
- Among others, the largest German automotive manufacturers have made significant investments in Hungary. Moreover, BYD, a leading Chinese electric vehicle manufacturer, has chosen Hungary as its first European manufacturing base for electric vehicles.
- Hungarian government securities remain popular both in international markets and among Hungarian citizens, as demonstrated by the record-breaking volume of retail government securities, which reached over 10.76 trillion forints by the end of March.
- The country's financial situation is stable and secure. The government is dedicated to reducing budget deficits and public debt, having successfully eliminated the twin deficit, while Hungary's trade balance consistently shows improvement.
- Since 2010, the Hungarian economy has established a stable foundation, with 1 million new jobs created, pushing the employment numbers over 4.7 million. Concurrently, the number of registered jobseekers has hit an all-time low.
The Ministry of National Economy also noted that "the government's effective measures have combated inflation caused by the war and misguided sanctions from Brussels," leading to dynamic real wage growth over the past half year. As a result, retail sales are on the rebound, with continual growth in the first two months of 2024, increasing by 0.6% in January and 1.1% in February compared to the previous year.
Following the successful curtailment of inflation, the government plans to reignite and further accelerate economic growth this year, promising that once the war concludes, Hungary will reclaim its status as one of Europe's fastest-growing economies. This ambition translates into projected GDP growth of 2.5% in 2024 and 4.1% in 2025.
"The government is working towards ensuring that by 2030, Hungary's development reaches 90% of the European Union average. To achieve this, the Ministry of National Economy has developed a new competitiveness strategy," the statement concludes.
Translation:
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Translated by AI
