Local Opinion: Hungarian Economy In Good Shape
- 3 Oct 2018 7:44 AM
- BudaPost
The leading independent online financial site expresses confidence that the Hungarian economy is doing well, and sees no reason to fear that a global economic slowdown would impact it as severely as the 2008 economic crisis.
The Hungarian economy is marked by robust and well-balanced growth, József Hornyák writes on Portfolio.
The financial analyst recalls that the growth rate is around 4 per cent, and all major sectors are booming. Hornyák adds that fast economic growth is partly driven by increasing internal demand.
At the same time, the public deficit is below 2 per cent of the GDP and the sovereign debt ratio is slowly decreasing. Hornyák underscores that the ratio of FX-debt has sunk to 20 per cent from its 50 per cent peak in 2011, which makes the Hungarian economy more resilient to external shocks.
As for potential risks, Hornyák mentions the low interest rates and loose monetary policy which may make the Forint vulnerable.
Although credit rating companies are reluctant to upgrade Hungary, both macro and microeconomic data suggest that a new global slowdown would have much less impact on the Hungarian economy now than in 2008, Hornyák writes.
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