State debt ratio falls to 77.4% in Q2

Debt

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Hungary's state debt relative to GDP fell to 77.4% at the end of the second quarter from 80.8% at the end of Q1, state news wire MTI reports, citing a second reading of data released by the National Bank of Hungary (MNB).

The ratio rose from 70.2% at the end of Q2 2020, boosted by economic stimulus during the coronavirus crisis.

In absolute terms, state debt reached HUF 39.417 trillion at the end of Q2, climbing from HUF 39.12 tln at the end of Q1.

Hungary's constitution stipulates that year-end state debt relative to GDP must decline until the ratio reaches 50%.

Hungary's latest EDP report shows the state debt ratio reaching 79.5% at the end of 2021, down from 80.1% at end-2020.

MNB data show the general government's net financing requirement - a good approximation for the general government deficit - reached HUF 430 billion, the equivalent of 3.2% of GDP, in Q2.

At the same time, households' net financing capacity reached HUF 438 bln, the equivalent of 3.3% of GDP, while non-financial corporations' net financing requirement stood at HUF 699 bln or 5.2% of GDP.

Households' net financial worth was the equivalent of 113.9% of GDP at the end of the period.

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