Credit Agency Affirms Investment-Grade Rating, Proving Economic Resilience

The Berlin-based Scope Ratings has confirmed Hungary’s investment-grade rating with a stable outlook, the Finance Minister said on his Facebook page.

Mihály Varga wrote that the rating agency expects an improving outlook, stronger economic growth, and a declining budget deficit in Hungary.

Scope Ratings’ experts praise the resilience of the Hungarian economy, which is supported by the financial balance indicators vis-à-vis the rest of the world,

significant capacity expansion investments, and a more favorable structure of public debt, he added.

In his post, the politician recalled that three credit rating agencies have examined the Hungarian economy in recent weeks, and in all three cases they confirmed the investment grade. Despite the international crises of recent years, the Hungarian economy is currently rated two notches higher than 10 years ago.

The rating agency identified the following in connection with the country: strong growth with solid medium-term growth prospects, underpinned by significant investment. In addition, they highlighted

a solid external and public debt structure and an improving external position, increasing Hungary’s resilience to external shocks.

As previously reported by Hungary Today, according to the Ministry for National Economy, three main factors are contributing to the recovery of the domestic economy:

1. High employment: around 4.7 million people are employed, meaning that despite the ongoing crises, the government has not only protected jobs, but more and more people are working, with near full employment.
2. Dynamically rising real wages: wages are growing at a rate of 14 percent, so that the average wage is now HUF 634,000 (EUR 1,566.8). This means that workers now earn HUF 77,000 (EUR 190) more than a year ago. Real wages have been rising steadily for a year now, with August salaries 9.4 percent higher than last year.
3. Inflation brought down to low levels: inflation has been brought down and kept low by the government – in September inflation was three percent.

Via MTI; Featured image via Facebook/Mercedes-Benz Gyár Kecskemét