Fitch’s sovereign credit rating of ‘BBB’ for Hungary, is a reflection of the country’s economy with strong structural indicators and evidence of growth proportionate to rival economies, driven by investments, as well as a secure, stable banking sector.
The Stable Outlook mirrors Fitch’s expectation of Hungary’s economic recovery and the economic financial consolidation, that would support the public debt ratio to continue its downward projectory, from 2021.
Fitch expects the Hungary’s general government deficit to diminish to 6.4% of GDP during 2021 and reduce even further to 6.1% in 2022.
Fitch forecasts that Hungary’s economy will bounce back in 2021, expanding by 4.9%, supported by finance from the European Union budget and covid pandemic recovery fund. Fitch estimates that in 2022, Hungary’s GDP growth rate will rise to 5.5%.
According to Fitch, Hungary’s banking sector is deemed to be liquid and well – capitalised.
Hungary’s external finances have consistently improved over recent years, supported by strong export performance and constant flows of direct investment into the Hungarian economy.