Moody’s downgraded the outlook for the Baa2 debt rating from stable to negative, but still recommends Hungary for investment. The credit rating after three years decided in such a way that it worsens Hungary’s economic prospects, which is justified by the actions of the Orbán government, the danger of losing significant EU funds, the weakening of GDP growth, and the budget deficit. Moody’s rating – call attention a hvg.hu – refers to downgrading at a later date.
Moody’s expects GDP growth of 0.7 percent this year, 1.9 percent next year, and 3 percent between 2026 and 2028. Next year’s and other forecasts fall significantly short of the Orbán government’s public expectations, the Prime Minister himself has said several times that he expects GDP growth of 3-6 percent in the coming years.
According to one of the materials of the Orbán government in Brussels, economic neutrality will not bring 6 percent growth
The Ministry of Finance issued a statement about Moody’s decision, attributing Moody’s decision to the “uncertain international environment and political debates in Brussels”. “It is thanks to the work of the last decade that, after more than 20 credit rating inspections conducted since the outbreak of the Russian-Ukrainian war, every credit rating agency kept Hungary in the recommended investment category,” the ministry celebrated itself and the Orbán government.
Source: nepszava.hu
