The report cited an increase in the current account surplus as a percentage of GDP from 0.8% in 2012 to 3.0% in 2013, and a rise in the country’s net financing capacity from 3.5% in 2012 to 6.5% in 2013.

It added that the high net financing capacity, associated with continuing foreign direct investment inflows last year, had allowed Hungary to repay about 8 billion euros of external debt. As a result, the country’s net external debt declined from a peak of over 60% of GDP in early 2009 to 35% by the end of 2013.

Though acknowledging the improvement, the NBH said Hungary’s external debt remains “relatively high by regional standards” and “requires continued monitoring”.

Source www.hungarymatters.hu

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