The Hungarian government continues to utilize a sizable fiscal stimulus package to boost an already strong economic recovery, leading us to project that the fiscal deficit will remain wider than 7% in 2021 and at nearly 6% in 2022, versus the 8% deficit in 2020. Strained relations with the EU have jeopardized the timely disbursement of funds to bolster economic recovery, but we assume next April's parliamentary elections will usher in calmer talks, followed by accelerated fiscal consolidation and slower economic growth. We affirmed our 'BBB/A-2' long- and short-term sovereign credit ratings on Hungary and maintained the outlook at stable. On Aug. 13, 2021, S&P Global Ratings affirmed its 'BBB' long-term and 'A-2' short-term foreign and local currency sovereign credit
