However, it acknowledged that “a narrower government deficit and strong current account surpluses in recent years have allowed a decline in government and net external debt”.

Reacting to the review, the economy ministry said all of the big three credit ratings agencies recommend Hungary to investors, which it said demonstrated that the economy was continually strengthening.

“Hungary’s ‘BBB-’ ratings balance its high level of GDP per capita, strong governance indicators and European Union membership against a track record of unorthodox economic policy and high government and external debts,” Fitch said.

The ministry said in a statement that Fitch, too, projects accelerating economic growth and expansion supported by increased consumption thanks to the continued decrease in unemployment and higher wages.

The ratings agency has acknowledged that economic growth does not involve higher indebtedness for Hungary, the ministry added.

Assessments by markets generally precede credit ratings agencies’ decisions.

Since the markets are currently more positive about Hungary’s economy than the agencies, it is likely that agency ratings will also further improve in the future, the ministry said.

Republished with permission of Hungary Matters, MTI’s daily newslette