Hungary’s net external financing capacity could reach new peak in 2015
Hungary net external financing capacity, calculated as a sum of the current and the capital accounts, reached €7.544 bln in the first three quarters of 2015, balance of payment data published by the National Bank of Hungary (MNB) today show.
The three-quarter financing surplus was up by €3.5 bln from a year earlier and neared the highest ever annual surplus, of €7.6 bln, reached in 2013.
Net transfers from the European Union totalled €4.711 bln in the first three quarters according to the accrual-based balance of payment statistics, explaining the bigger half of the financing capacity. The net EU transfers rose €1.7 bln from year-on-year. The net annual inflow was about €5.4 bln both in 2013 and in 2014.
Adjusted for seasonal effects, Hungaryʼs net external financing capacity was €2.502 bln or 9% of quarterly GDP in the third quarter.
The adjusted Q3 surplus was down from the second quarter when it reached €2.621 bln. It was up €668m from a year earlier.
The unadjusted net external financing capacity came to €2.763 bln in the third quarter, up from the second quarter mainly due a higher surplus on goods.
Using adjusted figures net transfers from the European Union totalled €1.930 bln in Q3, up €10m from the previous quarter and up 380m in one year.
In terms of the unadjusted values net primary income amounted to €251m and the surplus on current transfers to and from the EU was €288m. Funds received from the EU, recorded as capital transfers came to €1.021 bln.
The current account surplus reached an unadjusted €1.725 bln in Q3.
Adjusted for seasonal effects, the current account surplus came to €1.304 bln, up €103m in a quarter. A higher surplus for the balance of services lifted the current account surplus.
Outward investments by Hungarian residents rose by €533m and inward investments by non-residents by €1.079 bln in Q3.
Investments in equities reduced the value of Hungarianʼs investments abroad by €553m but reinvested earnings increased it by €282m. Capital withdrawals in the form of superdividends reduced foreign investment by €76m. Transactions in debt instruments showed a net €805m increase.
Non-residents in Hungary increased their investments with the value of equities rising €93m and reinvested earning reaching €1.54 bln. The balance of transactions in debt instruments showed a €555m decrease in net liabilities.
Portfolio investment transactions showed a net outflow of €1.427 bln in the third quarter, reflecting a €125m increase in assets and €1.302 bln decrease in liabilities.
Other investments showed an outflow of €4.611 bln. This reflected an €1.341 bln increase in assets (including a €1.283 bln increase in net assets vis-a-vis the EU, reflecting the suspension of the disbursement of EU funding between April and September)and a decline of €3.27 bln in liabilities. The most significant component of the latter was a €1.786 bln decline in credit institutions’ deposits.
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.