15 October 2024
In 2024 Q2, the annual current account surplus rose further to 2.3 per cent of GDP, mainly due to an increase in the trade surplus. Despite a strong net lending position, the net external debt ratio rose slightly as a result of one-off factors, but remained at a moderate level. International reserves stood at EUR 46.3 billion in June 2024, well above the level of short-term external debt, by almost EUR 15 billion.
In 2024 Q2, Hungary’s external position continued to improve, while net lending in the CEE region deteriorated slightly, according to preliminary data. During the quarter, the trade surplus continued to rise in Hungary, mainly due to an improvement in the energy balance and a decline in gross capital formation. As a result, the current account surplus remained outstandingly high, at close to EUR 2 billion, in the second quarter. The four-quarter current account surplus thus rose to 2.3 per cent of GDP, with the economy’s net lending increasing to 2.9 per cent of GDP.
In terms of the individual sectors, the improvement in the external position reflected a decline in the government deficit due to falling expenditures and rising tax revenues, and an increase in household savings.
In parallel with the current account surplus, there were FDI outflows in the second quarter due to the repurchase of Budapest Airport, resulting in a slight increase in net external debt to 11 per cent of GDP, which remains at an historically low level. At EUR 46.3 billion, international reserves remained close to the previous quarter’s historical high in June 2024. This was nearly EUR 15 billion above the level of short-term external debt, which is closely monitored by investors.