A comparatively advanced economy with a highly skilled labor force within the 'BBB' category and well diversified economic and export structures Close economic and trade integration with the EU Sustained fiscal consolidation efforts for more than three years, which have significantly reduced budget deficits High public debt levels issued at relatively short maturities High external leverage and external financing needs One of the highest tax wedges on labor in the EU The ratings on the Republic of Hungary benefit from our view of its comparatively advanced economy and its close economic and trade integration with the EU. We expect sustained consolidation efforts to contain the deterioration in the Hungarian government deficit despite the downside pressures on the economy. The gradual
