As a result of the hard work of Hungarian people, Hungary once again stands before an “economic breakthrough,” said Prime Minister Viktor Orbán addressing the Parliament earlier this week at the opening of the spring session.
In recognition of Hungary’s successful efforts to revive its economy, Fitch Ratings upgraded the country to investment grade recently. Although the upgrade came earlier than statistics might suggest, it was no surprise as markets had already priced Hungary’s widely anticipated return to investment grade at multiple credit rating agencies this year. Fitch’s upgrade signals important recognition that Hungary’s reforms are working.
A recent installment of the Global Investment Guide, a series published by Forbes, writes on the recovery of the Hungarian economy, noting that Hungary has reported even better than expected results in stimulating economic growth, reducing unemployment and cutting the GDP-to-debt ratio for the first quarter of 2016. Thanks to savvy reforms that work, Hungary’s bonds, equity markets and currency have recovered and are healthy again.
The Hungarian Minister for National Economy Mihály Varga presented Hungary’s 2017 budget plan on Tuesday. The core message signals predictability and stability to investors, while maintaining the government’s popular “one step ahead” policy, especially for families. The budget plans for 3.1 percent GDP growth, a falling debt-to-GDP ratio and a deficit of 2.4 percent.