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Moody’s Ratings gave a favourable assessment of Hungary’s economy in a periodic review of the country’s sovereign rating, Finance Minister Mihály Varga said in a post on Facebook in the early hours of Saturday. Varga noted that Moody’s had not taken a rating action and said Hungary’s current rating remained in force with a stable outlook.
In its analysis, Moody’s gave a positive evaluation of the government’s reduction of the budget gap and public debt, he said. Moody’s also acknowledged the Hungarian economy’s strong growth outlook, pointing to expanding investments as well as strengthening exports and consumption, he added. “In spite of the war in neighbouring Ukraine and the deterioration of the European Union’s competitiveness, all three big credit rating agencies put Hungary in the investment grade category and rate it two notches higher than at the beginning of the last decade,” he said. The National Economy Ministry said in a statement that confidence in Hungary remained unbroken in spite of the escalating wartime situation. Hungary’s assessment on international money markets is favourable and Hungarian government securities remain popular, evidenced by successful bond auctions and inflow of foreign direct investment (FDI), it added. Germany’s biggest carmakers are ploughing money into investments in Hungary, joined by high-tech EV industry players, such as China’s BYD and CATL, it said. Hungary’s financing position is stable and secure, and the government is committed to disciplined fiscal management as well as reducing the budget gap and state debt, it added.