Country Report Hungary
- ID: 2101527
- November 2015
- Region: Hungary
- 27 Pages
- The Economist Intelligence Unit
Gross public-sector debt decreased to 78% of GDP at end-September, from 78.7% of GDP at end-June, according to data from the National Bank of Hungary (NBH, the central bank). Public debt is expected to decline further in the final quarter of 2015, as revenue has increased robustly and the government has large cash reserves.
Public debt at end-September 2015 was down from 79.4% of GDP a year earlier, although it still exceeded the end-2014 level of 76.2%. The drop in the public debt/GDP ratio between end-June and end-September 2015 took place as the total debt increased by just Ft32bn (US$110m), or 0.1%-well below the rise in nominal GDP. Robust revenue performance and the strengthening of the forint helped to lower debt levels when expressed in forint terms.
The government's efforts to reduce end-2015 public debt from the year-earlier level will be helped by indications of a continuing strong fiscal performance in the final quarter of 2015 and by the authorities' sizeable cash reserves. The government's deposits at the NBH totalled Ft1.64trn (US$58.4bn) at end-September, compared with Ft988bn at end-2014-a difference equivalent to 2% of estimated GDP.