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The agency noted that further cuts to state investments will be difficult, interest expenditures remain high, and pre‑election promises will require additional funding.
Fitch also warned that political uncertainty after the vote, especially conflicts between institutions, could limit the new government’s ability to implement necessary adjustments and undermine investor confidence.
Hungary’s growth has lagged behind that of similarly rated countries since 2023, with productivity stagnating and external competitiveness weakening.
Standard & Poor’s issued a similar warning last week, emphasizing that surging energy prices linked to the Middle East conflict could push Hungary’s “BBB-” rating into the junk category.
All three major rating agencies currently assign Hungary a negative outlook, with reviews scheduled between May 22 and June 5, raising the stakes for fiscal credibility in the months ahead.
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