Introductory Report: Short-term Stability with Serious Sustainability Concerns

HUNGARY - Report 09 Jan 2014 by Istvan Racz

Executive Summary With a recovery underway, fiscal stabilisation implemented, record low inflation, and a sizeable current and capital account surplus, Hungary shows signs of strengthening macro fundamentals. Sovereign credit and bonds improved substantially, despite the sizable external and government debt, inconsistencies in economic policies, and the lack of an investment grade sovereign credit rating. Going forward, there is potential for further improvements in sovereign credit and bonds if growth and stability continue to strengthen. However, there are four key factors, which limit th...

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