Third rating upgrade in sight

Days ahead of the next report and likely upgrade of Hungary to investment category by Moody’s, a pro-government columnist thinks that the Hungarian economy is on the right path. Her left-wing counterpart complains about lacklustre growth.  

Moody’s has no choice but to follow Fitch Ratings and Standards & Poor’s and upgrade Hungary to investment category, Zsuzsa Farkas writes in Magyar Idők. The pro-government analyst contends that the credit rating companies’ fears over Hungary’s economic path proved groundless. The Orbán government has kept the deficit well below the 3 per cent threshold and decreased public debt from 80 to 74.7 per cent of the GDP. In the meantime, external debt has decreased even more, so Hungary now is less vulnerable to the whims of foreign investors. The next task for the government is to help Hungarian small and medium-sized enterprises to boost productivity and through this, improve employment and welfare, Farkas writes.

In Népszava, Miklós Bonta thinks that despite Moody’s likely upgrade later this week, Hungarian economic growth remains sluggish. The left-wing columnist recalls that Morgan Stanley revised its growth estimate to 1.8 per cent year on year. This, Bonta believes, is a clear indication that the Hungarian government’s efforts to boost economic output have failed.

Tags: credit-rating, debt, deficit, economy, GDP