In the absence of further significant COVID-19-related shocks, Hungary's economy will rebound and reach pre-pandemic real GDP levels by early 2022, sooner than most other Central and Eastern European (CEE) economies. After a large COVID-19-related deficit in 2020, fiscal deficits will begin to narrow, while the National Bank of Hungary will continue to use a broad array of monetary policy tools to support the economic recovery. Risks to the economic recovery include a possible recurrence of the pandemic, a more protracted weakness in external demand, or a fall in domestic demand dynamics. We are affirming our 'BBB/A-2' sovereign credit ratings on Hungary. The outlook is stable. On Aug. 14, 2020, S&P Global Ratings affirmed its 'BBB/A-2' long- and short-term foreign
