Hungary’s trade surplus reached 507 million euros in May, the Central Statistical Office (KSH) said in a second reading of data. The surplus was revised upward from 505 million euros in a first reading published on July 9. The economy ministry said it expects export growth to remain “favourable” throughout the rest of the year, allowing foreign trade to contribute significantly to economic growth.
The trade surplus rose by 225 million euros from a year earlier. In January-May, the trade surplus came to 3.491 billion euros. While imports edged down at an annual 0.9% to 6.695 billion euros, exports climbed 2.3% to 7.202 billion euros, KSH said. Imports came to 33.658 billion euros, up by 5.1%, and exports were up by 6.8% at 37.149 billion euros. Fully 76% of Hungary’s imports came from other European Union countries during the period, while almost 79% of its exports went to EU member states. Hungary’s terms of trade improved 0.5% in January-May as the forint firmed 0.2% to the euro but weakened almost 23% to the dollar.
ING Bank chief analyst András Balatoni said that although Hungary’s trade surplus continues to be “massive”, last year’s data mean that export growth will be likely to slow later on. He noted that industrial output growth slowed in April-May despite the favourable outlook, leading to a deceleration in export growth for May. Erste Bank analyst Gergely Ürmössy said this year’s trade surplus could potentially reach 7.5 billion euros, up from last year’s 6.4 billion euros. He said it was the automotive industry that lifted exports in May, adding that increased automotive capacities and a weaker forint were likely to boost exports even further.
via ksh.hu and hungarymatters.hu photo: nol.hu