Hungary Outlook Revised To Positive On Solid Economic Growth Prospects; 'BBB/A-2' Ratings Affirmed

Hungary's economy has grown at an average 5% in 2018-2019 and is set to expand by 3.5% in 2020 in the face of external weakness. Despite softening growth in the longer term, income convergence with the EU average will likely continue, absent major external shocks. Narrower fiscal deficits in 2019 and 2020 should enable further reduction in government debt to GDP, whereas policy efforts will support ongoing improvement in the debt profile. We are therefore revising our outlook on Hungary to positive from stable, and affirming our 'BBB/A-2' sovereign credit ratings. The positive outlook signals our view that there is an increased likelihood that we will upgrade Hungary in within the next 24 months. On Feb. 14, 2020, S&P Global

...- Hungary's economy has grown at an average 5% in 2018-2019 and is set to expand by 3.5% in 2020 in the face of external weakness. - Despite softening growth in the longer term, income convergence with the EU average will likely continue, absent major external shocks. - Narrower fiscal deficits in 2019 and 2020 should enable further reduction in government debt to GDP, whereas policy efforts will support ongoing improvement in the debt profile. - We are therefore revising our outlook on Hungary to positive from stable, and affirming our '###/A-2' sovereign credit ratings. - The positive outlook signals our view that there is an increased likelihood that we will upgrade Hungary in within the next 24 months....

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