On May 17, 2004, Standard&Poor's Ratings Services affirmed its 'A-/A-2' foreign currency ratings and 'A/A-1' local currency ratings on the Republic of Hungary. The affirmation reflects Hungary's competitive economy and export sector, its moderate public sector external debt burden, and external liquidity indicators. The outlook is stable. The ratings on Hungary remain constrained, however, by the challenge of bringing down the general government deficit and debt levels, and further reducing inflation. Hungary's small and very open economy has the fourth-highest GDP per capita in U.S. dollar terms among new EU members, at an estimated $10,196 in 2004. GDP growth is projected to pick up pace to about 4.0% by 2006, from 2.9% in 2003. The revival of exports
