Volatile external economic conditions, uncertainty on EU inflows, and returning inflation complicate Hungarian policymaking, raising the risk of stagflation. The period in the run-up to 2026 general elections could also see renewed fiscal loosening, despite already-elevated debt to GDP. We revised our outlook to negative from stable and affirmed our 'BBB-/A-3' sovereign credit ratings on Hungary. On April 11, 2025, S&P Global Ratings revised its outlook on Hungary to negative from stable. At the same time, we affirmed our 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Hungary. The negative outlook reflects our consideration of increasing risks to Hungary's fiscal and external stability over the next two years from rising trade protectionism, weakening global demand, narrowing
