Pandemic spending lifts state debt ratio to 74.3%
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Government expenditures related to the coronavirus pandemic lifted Hungary's state debt relative to GDP to 74.3% at the end of the third quarter, a second reading of data released by the National Bank of Hungary (MNB) on shows.
The ratio was raised from 73.8% in preliminary data published on November 17.
The debt ratio rose from 70.5% at the end of Q2 and 65.9% at the end of Q1. The debt ratio stood at 65.5% at the end of last year.
In absolute terms, state debt reached HUF 35.039 trillion at the end of Q3.
Hungary's constitution stipulates that year-end state debt relative to GDP must decline until the ratio reaches 50%, but the government anticipates the level will rise this year because of pandemic defense and economic stimulus.
The net financing requirement of the general government, which is a good approximation of the general government deficit, came to HUF 461 billion in Q3, equivalent to 3.8% of quarterly GDP. In the four quarters to Q3, the financing requirement reached HUF 2.477 tln or 5.3% of GDP.
Net lending of non-financial companies reached HUF 265 bln in Q3, equivalent to 2.2% of quarterly GDP. In the four quarters to Q3, non-financial companies had a net financing requirement of HUF 126 bln or 0.3% of GDP.
Net lending of households came to HUF 439 bln in Q3 or 3.6% of quarterly GDP. In the four quarters to Q3, net lending of households reached HUF 2.635 tln or 5.6% of GDP. Households' net financial worth stood at 111.7% of GDP at the end of the quarter.
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