Hungary net external financing capacity drops in Q3
Hungaryʼs net external financing capacity - the combined surpluses of the current and capital accounts - reached EUR 557 million in the third quarter, the National Bank of Hungary (MNB) said in a quarterly release of data on Thursday.
Adjusted for seasonal effects, the net external financing capacity came to EUR 830 mln, equivalent to 2.5% of quarterly GDP, according to a report by state news wire MTI.
The unadjusted net external financing capacity is down sharply from EUR 1.667 bln in Q2, and EUR 1.366 bln in Q1.
The current account surplus narrowed to EUR 156 mln in Q3, from EUR 929 mln in Q2, and EUR 671 mln in Q1. The trade surplus reached EUR 1.367 bln, while the net primary income deficit came to EUR 1.264 bln.
The Q3 capital account surplus stood at EUR 402 mln. The balance included EUR 462 mln of European Union transfers.
Current transfers from the EU reached net EUR 464 mln, almost evenly divided between primary and secondary income inflows.
The financial account showed a deficit of EUR 311 mln. There was a net EUR 1.741 bln inflow of direct investment. Residents invested EUR 397 mln abroad, of which reinvested profits reached EUR 398 mln. Foreign investors brought in EUR 2.139 bln, including EUR 2.203 bln in reinvested profits.
Excluding debt related to FDI, Hungaryʼs gross external debt stood at EUR 73.516 bln at the end of Q3 2018, down EUR 3.137 bln from a year earlier. The debt of the general government and the central bank, which accounted for a little under half of total gross external debt, dropped during the period.
Net external debt, without FDI-related debt, dropped EUR 7.254 bln in one year to EUR 11.120 bln at the end of Q3. Net debt of the general government and the MNB dropped by more than EUR 6 bln, while the EUR 1.5 bln net debt of other sectors combined at the end of Q3 2017 turned into net receivables of EUR 145 mln.
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