A comparatively advanced economy within the 'BBB' category, with well-diversified economic and export structures Close economic and trade integration with the EU A highly skilled and educated labor force Very high fiscal deficits, and high and still rising public debt levels High external leverage, despite falling current account deficits Structural impediments and large tax burden One of the highest tax wedges on labor in the EU The ratings on the Republic of Hungary are supported by a comparatively wealthy economy, with well-diversified economic and export structures, that is well integrated with the EU. The ratings remain constrained by very high fiscal deficits and high and rising government debt levels, as well as a large external debt burden. Years of public
