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Nov 26, 2018

Moody’s affirms Hungary’s Baa3 ratings with a stable outlook

Moody’s projected Hungary’s GDP growth would reach 4.3 percent in 2018 and 3.4 percent in 2019

Leading credit rating agency Moody’s has affirmed Hungary’s Baa3 ratings with a stable outlook.

In its latest review on Friday, Moody’s said the Hungarian authorities’ continued commitment to gradual fiscal consolidation, robust growth and “overall supportive institutional capacity” were the key drivers behind the rating action.

According to MTI, Moody’s projected Hungary’s GDP growth would reach 4.3 percent in 2018 and 3.4 percent in 2019.

The ratings agency acknowledged the effect of government policies aimed at stimulating domestic demand and noted the positive impact recently announced investments in the automotive sector would have on growth. However, it said that the tight labor market poses a restraint for continued strong growth.