Hungary's Q1 current account improves to EUR 787mn surplus, FDI negative.

By bne IntelliNews July 1, 2011
Hungary's current account generated a surplus of EUR 787mn in Q1, improving from an EUR 604mn surplus for the same period of the previous year, the National Bank of Hungary (NBH) reported. Expectedly, foreign trade was the main driving force behind the favourable development, since all other sub-articles deteriorated on the year. It posted a surplus of EUR 2.2bn for the period, widening by 19.97% y/y. The foreign goods trade surplus improved by 43% on the year to EUR 1.79bn, while the surplus of services trade shrank by 27.45% y/y to EUR 444mn for the period. The lower services surplus was also based on weaker export of foreign tourism services. At the same time, the increase in both export and import of other services, which includes transport, indicated a recovery of world markets and more intense external trade. The balance of net current income deteriorated by 13.4% y/y to an EUR 1.39bn deficit for the quarter. Its worsening was aggravated by a higher deficit on current transfers, which climbed by 62.2% y/y to EUR 60mn. Meanwhile, FDIs in the country were negative by EUR 34mn during the quarter, resulting from a substantial outflow in other capital. The portfolio investment attracted by Hungary, however, almost doubled y/y in Q1 and offset the negative developments in the other articles of the financial account. As a result, the external position of the country improved to a net financing capacity of EUR 1.3bn in Q1, pointing to a market reduction of its external vulnerability. Still, gross external debt remained relatively high at EUR 109.7bn at the end of the period, rising by 0.3% y/y on account of higher government borrowing to finance the budget deficit.

Related Articles

Assets of Hungarys investment funds up 3.2% m/m in Feb 2013.

Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more

Hungary's number of employees down 0.6% y/y in Jan 2013.

The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more

Hungarys MVM clears deal for purchasing E.ONs local units.

The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss