Lower investment and weaker external demand pose risks to Hungary's economic growth prospects this year. In addition, although our base case is that the government consolidates the budgetary position commencing in 2025, amid recovering demand and lower borrowing costs, the approaching 2026 elections could complicate the government's ability to reduce the large budgetary deficit. Positively, inflation has come down and the current account has shifted into a modest surplus. Nevertheless, we expect the Hungarian National Bank to be sensitive to exchange rate developments and to proceed cautiously on monetary easing in the remainder of 2024 and into 2025. We affirmed our ratings on Hungary at 'BBB-/A-3' and maintained the stable outlook. On Oct. 25, 2024, S&P Global Ratings affirmed its
