In August, the foreign trade surplus in goods was EUR 708 million.Continue reading
Hungary’s foreign trade balance recorded its largest surplus ever in November last year. The Hungarian Central Statistical Office (KSH) reported this morning that the figure was EUR 1.72 billion, compared to a historic high of EUR 1.57 billion in June, Portfolio writes.
The surplus of EUR 1.72 billion achieved in November is a new historic high. The surplus in November also boosted the 12-month rolling balance. The rolling balance of EUR 9.3 billion is also slowly reaching a new historic high. The previous high was EUR 9.86 billion in November 2016. A year ago we saw a very sharp deficit of EUR 9.2 billion, largely due to the fall in energy prices and a sharp surge in imports.
Moreover, the year-to-date foreign trade balance (January-November combined) has also seen a new historic high with a surplus of EUR 9.6 billion,
exceeding the EUR 9.2 billion balance in the first eleven months of 2016.
The balance of foreign trade in goods. Source: ksh.hu
It is also worth looking at how this staggering surplus of EUR 1.72 billion was achieved in November last year. Hungary’s exports declined by 3.8% year-on-year to EUR 12.9 billion, albeit from a relatively high base, and Hungarian exports have since failed to reach a new nominal peak in the face of weakening external market opportunities.
Meanwhile, the country’s imports have continued to plunge, amid weak domestic demand and falling energy prices. Imports fell by 24.7% on an annual basis to EUR 11.2 billion. Thus, the overwhelming reason for the huge external surplus is the collapse of the country’s imports, and there is no real turnaround so far, only stabilization.
All in all, this means that
the huge improvement in the foreign trade balance is mainly due to the fall in energy bills and domestic consumption, not to the increase in exports.
Via Portfolio, Featured image: Pixabay