ADVERTISEMENT

Analysts blame deteriorating trade balance on recession in W. Europe

Pharma

Analysts polled by MTI blamed the recession in Western Europe and slowly increasing domestic household consumption for deteriorating trade figures published on Monday.

Hungary had a €239 million trade deficit in July after running surpluses for five months in a row, the Central Statistics Office (KSH) reported in the morning on Monday.

Raiffeisen Bank’s Zoltán Török said the July deficit was at least €60 million bigger than expected. He added that the full-year trade balance was still likely to be a surplus, which has not been seen for many, many years. Török explained the worsening trade figures citing the recession on Hungary’s main export markets and a pick up in imports as Hungarian households’ rate of consumption slowly grows. Export growth is unlikely to improve much in the future, but the current 8% annual increase could be sustainable, he said. Hungary’s export structure is changing, as more exports are going to high-growth economies in Central and Eastern Europe. At the same time, more multinationals are bringing production to Hungary, expanding the country’s export capacity.

Takarékbank’s Gergely Suppan also said the slowdown in export growth was a result of the recession in Western Europe. Though he noted that growth in the base period was high because of big grain exports to European intervention stores. The unfavorable economic conditions in Europe will keep Hungary’s trade balance in the red for at least another half year, he said, citing slowing exports in the vehicle and electronics sectors, two main engines of Hungary’s growth. (MTI-Econews)

ADVERTISEMENT

Pressure increasing on CFOs - PwC survey Analysis

Pressure increasing on CFOs - PwC survey

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.