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Economy development minister augurs credit rating agency upgrades ‘soon’

Minister of Economic Development Marton Nagy said Hungary can expect its sovereign rating to be upgraded "within a very short period of time" as a result of favourable economic trends, commenting on a downgrade by S+P Global on Friday.

Nagy noted that rating agencies had upgraded Hungary because of improved economic fundamentals in 2014, 2016 and 2020. The government won’t “stand by idly” now, either, but will deliver on its economic policy goals, he added.

He said the government’s “most important goal” is to keep the economy out of recession as many eurozone countries are set to enter a period of stagflation. He put Hungary’s GDP growth at 1.5 percent in 2023 and over 4 percent in 2024.

In order to achieve sustainable economic growth, Hungary needs to keep its investment rate over 25 percent of GDP, while FDI reaches 7 percent of GDP, he added.

Maintaining tight fiscal controls, the government targets a budget deficit of 3.9 percent of GDP in 2023 and 2.5 percent in 2024, he said. The public debt ratio is set to fall to 69.7 percent of GDP in 2023 from 73.5 percent in 2022, he added.

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