The streak of positive economic forecasts continue as the Hungarian economy is showing encouraging signs, reported the Ministry for National Economy on Thursday. The seasonally adjusted GKI-Erste economic sentiment index reached a fifteen-year high in April 2014, topping a year and a half rise. While May have showed some worrying statistics regarding business expectations, June was once again about considerable improvements.
One of the driving forces were the improvements in the employment intentions in the construction and services sectors. In addition to a large drop in the inflation expectations of consumers, the assessment of industrial and services sector enterprises with regard to the Hungarian economy’s outlook tuned significantly positive.
According to the report Hungary’s risk assessment also improved “spectacularly”. The country’s CDS spread was 342 basis points a year ago, but a strong downward trend pushed it down to 162 basis points by the end of June. This drop fits well into regional trends as Hungary’s CDS premium is 53 percent lower compared to previous levels, with Poland (52 percent) and Slovakia (58.1 percent) also enjoying similar success, while the Czech Republic (40 percent) and Romania (43.1 percent) lags behind.