Hungary's current account surplus expanded by 297% y/y to EUR 1.28bn in the first half of 2013, central bank data showed. In our estimates, the surplus accounted for 1.3% of the full-year GDP forecast.
The surplus on the foreign trade account widened by 8% y/y to EUR 2.17bn. Exports advanced 1.9% y/y to EUR 38.46bn, while imports grew at the slower pace of 1.5% y/y to EUR 36.29bn. The surplus on the service account grew by 11.3% y/y to EUR 1.76bn in H1 2013.
The deficit on the income account narrowed by 6.6% in annual terms to EUR 2.85bn. The balance of current transfers registered a surplus of EUR 203.6mn, reversing from a EUR 211.4mn deficit in the same period a year earlier. This was due to higher net EU transfers, which grew to EUR 653.5mn in H1 2013 from EUR 278.5mn in H1 2012.
The surplus on the capital account widened by 66.5% y/y increase to EUR 1.48bn in H1. This combined with the current account surplus led to net external financing capacity of EUR 2.76bn in the first quarter of 2013, up from EUR 353.5bn a year earlier.
The financial account improved mainly due to rising portfolio investments, which grew to EUR 2.6bn from minus EUR 272mn in the previous year. By contrast, the net FDI grew to minus EUR 520mn in H1 2013 from minus EUR 28mn a year earlier and net other investments increased 46.5% y/y to minus EUR 4.7bn.
|Hungary current account in H1, EUR mn|
|of which: EU transfers||278.5||653.5||134.6|
|Source: Central bank|
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