Hungary is rated as an investment-grade country by Standard & Poor’s.
Standard & Poor’s reaffirms its BBB- rating for Hungary and continues to recommend the country as an investment grade country with an unchanged stable outlook. Therefore, the rating agencies remain confident in the Hungarian economy and appreciate the measures taken by the government to improve the balance sheet indicators.
According to Standard & Poor’s, the inflation is on a downward trend, and will fall to single digits by the end of 2023 due to disciplined fiscal and monetary policy. In addition to this, the labor market remains strong, with high employment despite a dangerous international environment, while unemployment remains below 4 percent.
Exports will offset the fall in consumption, which is why S&P expects 0.1 percent growth in GDP this year. Moreover, S&P expects exports to grow by as much as 4 percent this year, as a result of significant foreign investment. Experts report that the government is committed to reducing the budget deficit. In spite of the challenges, they predict that this year’s deficit will remain below 4 percent and public debt will continue to decline steadily over the next two years.