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Current account deficit nears EUR 360 mln in 2019

The current account deficit of Hungary reached EUR 359.4 million in 2019, improving from a EUR 717.3 mln deficit in 2018, MTI Econews calculated based on preliminary December 2019 data released by the National Bank of Hungary (MNB) on Friday.

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The trade in goods and services recorded a EUR 5.94 billion surplus last year, improving by EUR 69.3 mln from 2018.

Trade in goods had a deficit of EUR 2.19 bln counterbalanced by an EUR 8.13 bln surplus in trade of services in 2019.

The balance of primary incomes was a negative EUR 5.32 bln down by only EUR 35.5 mln from 2018. In 2019 the balance of employee payment was EUR 2.52 bln but net income from investments was minus EUR 9.06 bln.

Other primary income had a surplus of EUR 1.21 bln down by EUR 122 mln from 2018.

The balance of secondary incomes had a deficit of EUR 971 mln compared to a EUR 1.29 bln deficit a year before.

The capital account of Hungary had a EUR 2.76 bln surplus in 2019 down by EUR 689.5 mln annually.

The financial account showed a EUR 1.32 bln deficit, sharply down by EUR 2.47 bln.

In 2019 the balance of direct investments had a EUR 3.11 bln deficit, worsening by EUR 300 mln from 2018. Portfolio investment provided a EUR 1.53 bln surplus, higher by EUR 1.76 bln than a year before.

The balance of financial derivatives improved by EUR 971 mln to an EUR 38.9 surplus however other investments showed a EUR 116.5 mln deficit down from an EUR 1.52 bln surplus. The surplus on reserve assets tumbled by EUR 3.27 bln to EUR 325 mln.

Hungaryʼs unadjusted net external financing capacity - the combined balances of the current and capital accounts - reached EUR 2.41 bln in 2019 down from EUR 2.74 bln in 2018.