Budapest, 10 January 2025 – Hungary’s annual current account surplus stabilised at a high level of 2.4 percent of GDP in 2024 Q3, as the external position remained broadly unchanged, with a decline in the balance of goods and an increase in the balance of income and services. In addition to the significant net lending position, considerable FDI inflows were also registered, lowering the country’s external debt ratios. International reserves exceeded the level of short-term external debt by more than EUR 15 billion in September 2024.
According to preliminary data, Hungary’s favourable external position stabilised at a high level in 2024 Q3, while the position of other countries in the region deteriorated slightly. During the third quarter, the trade surplus narrowed somewhat, mainly due to a decline in the non-energy goods balance; however, this was offset by an improvement in the balances of income and services. Overall, the current account surplus for the first three quarters was outstanding, exceeding EUR 5.2 billion. The four-quarter current account surplus thus amounted to 2.4 percent of GDP, while the economy’s external financing capacity stood at 2.9 percent of GDP.
The external position in the sectoral savings approach decreased moderately, as a result of the decline in household and corporate financial savings, as well as the reduction in public sector financing needs stemming from subdued investment activity and rising tax revenues.
In addition to the surplus on the current account, there were also significant net inflows of FDI funds amounting to more than EUR 1.2 billion, which lowered the ratios for both net and gross external debt to 10 percent and 62 percent of GDP, respectively. International reserves reached EUR 46 billion in September, exceeding the level of short-term external debt – an indicator monitored closely by investors – by EUR 15.4 billion, which is more than in the previous quarter and represents an unprecedented level of reserve adequacy.