We expect the Hungarian economy will contract by 4% in 2020 due to the adverse effects of the COVID-19 pandemic. Strong macroeconomic fundamentals and ongoing policy stimulus should allow the country to absorb the shock, and we expect growth to recover in 2021. However, there is high uncertainty over the pandemic's duration and the resulting economic and fiscal fallout. We are therefore revising our outlook on Hungary to stable from positive, and affirming our 'BBB/A-2' sovereign credit ratings on the country. On April 28, 2020, S&P Global Ratings revised its outlook on Hungary to stable from positive. At the same time, we affirmed our 'BBB/A-2' long- and short-term foreign and local currency sovereign credit ratings on the country. As a
