Higher c/a surplus offsets drop in EU transfers in Q2
EU capital transfers to Hungary fell by almost €1.2 billion in the second quarter from the corresponding period of 2015, but the countryʼs external financing capacity was little changed as the current account surplus doubled to €2.0 bln, news agency MTI calculated yesterday, based on preliminary data released by the National Bank of Hungary (MNB).
EU capital transfers dropped to just €122 million in Q2 from €1.31 bln in the corresponding period a year earlier, when payouts rose because of a rush to meet the funding cycleʼs spending deadline. The decline caused the capital account surplus to narrow sharply, but the current account surplus widened on higher trade in goods, keeping the external financing capacity practically level at €2.1 bln.
In the first half of 2016, EU transfers fell to €404 mln, just one-fifth of their level in the same period of last year. In 2015, full-year capital transfers reached €4.9 bln.
Hungaryʼs first-half current account surplus rose €1.5 bln to €3.7 bln, also lifted by a higher surplus of trade in goods.
Current transfers from the EU fell to €223 mln in Q2, and €332 mln in H1.
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