The rating agency said that after nearly a decade of suppressed demand, the Hungarian economy is recovering. But the government’s policies and a shrinking population cloud mid-term prospects.

“The stable outlook reflects our view that the risks to Hungary’s creditworthiness are balanced”, S and P said.

S and P said the rating is also supported by the Hungarian government’s success in keeping its general government borrowing needs within EU limits as well as by its commitment to financing itself solely in local currency.

The ratings remain constrained by the country’s external position and the government’s foreign exchange exposure on its own stock of debt, which it is gradually reducing, it said.

The agency projects Hungary GDP growth may exceed 3% this year.

Source www.hungarymatters.hu

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