Good News for Hungary from OECD and Moody’s
- New Europe Investor
- November 09, 2015
Ratings agency, Moody’s, has raised Hungary’s debt outlook from junk to positive in a review last Friday.
Hungary’s debt is still one below investment grade at Ba1, but with the outlook now positive it is one step closer to investment status.
The Hungarian currency, the forint, climbed slightly against the euro on the news.
In further positive news for the economy, the OECD has increased its growth forecasts for 2016. Earlier in the year, it predicted a growth rate of 2.2%, with 2.4% being the figure offered today. Its prediction for this year remains at 3%.
The report stated, “Economic growth was strong in 2015 but is projected to slow in 2016 as public investment declines and the fiscal stance becomes less accommodative. Activity should rebound in 2017 on the back of renewed public investment.”
The OECD also sees Hungary’s public debt to GDP ratio falling over the next two years, with the budget deficit as low as 1.5% in 2017.