Hungary’s debt/GDP ratio shows signs of slight improvement

The consolidated gross debt of the general government at nominal values ​​was HUF 47,884 billion (€116 billion) at the end of September, or 75.9% of GDP, the lowest ratio in eight quarters, according to the Hungarian National Bank (MNB) website.

Preliminary data show that the general government’s net financial needs for the year ending Q3 were HUF 3,403 billion, or 5.4% of GDP, including HUF 815 billion, or 4.8% of GDP, in the third quarter of this year. reached. Quarterly GDP. At the end of the third quarter, unconsolidated inventories of general government financial assets and liabilities amounted to 37.5% and 80.6% of GDP respectively, while net financial liabilities represented 43.1% of GDP, down 12.9 percentage points. I was. From the end of last year.
General government net financial debt fell by HUF 759 billion in the third quarter and HUF 3,675 billion in the first three quarters to HUF 27,196 billion (€65.8 billion) at the end of September.
The MNB’s report also showed that long-term stocks of general government debt fell due to trading in the third quarter, which was largely explained by net sales of government bonds by households.

Graph by KSH

In this context, the Hungarian Historical figure National debt as a percentage of GDP. At the start of Viktor Orbán’s first government in 1998, his debt was 60.5%, but by the end of 2002 he had fallen to 55.6% (Maastricht’s requirement was 60% of his). This is the number inherited by the new socialist government of Ferenc Giurciani,

By the time Gordon Bainai’s second leftist government came to an end in 2010, the national debt had reached an astronomical 80%.

One of the Orban government’s election promises was to reduce this figure. It was the lowest point since his 2010 election victory that could be cut to his 65.5% in 2019. The Covid 19 crisis, and the invasion of Ukraine in February of this year, have further exacerbated national debt.

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Featured photo: MTI/Koszticsák Szilárd Hungary’s debt/GDP ratio shows signs of slight improvement

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