Net external financing capacity 1.8% of GDP in Q4

MNB

Adjusted for seasonal effects, Hungaryʼs net external financing capacity - the combined surplus on its current and capital accounts - was EUR 562 million, or 1.8% of quarterly GDP, in the fourth quarter, balance of payments data published by the National Bank of Hungary (MNB) on Friday show.    

The adjusted Q4 surplus was down from the third quarter, when it reached EUR 830 mln, state news wire MTI reported.

The unadjusted net external financing capacity came to EUR 628 mln in Q4, down from EUR 897 mln in the third quarter of the year.

The seasonally adjusted surplus in the trade in goods amounted to EUR 364 mln in Q4 2017, remaining below the level recorded in the previous quarter. Exports of EUR 21.87 billion and imports of EUR 21.70 bln in Q4 exceeded their levels in the previous quarter. 

The surplus in the trade in services was EUR 1.91 bln, exceeding the EUR 1.77 bln surplus recorded in the previous quarter.

The adjusted primary income deficit of EUR 1.40 bln was higher than in Q3, but the EUR 340 mln deficit in secondary incomes was lower.   

Using adjusted figures, net transfers from the European Union totaled EUR 902 mln in Q4, while using adjusted figures the amount was EUR 968 mln.   

According to financial accounts data, FDI transactions showed a net inflow of EUR 1.30 bln in Q4, as outward FDI fell by EUR 2.37 bln and inward FDI fell by EUR 1.06 bln.   

Portfolio investment transactions showed a net outflow of EUR 696 mln in the fourth quarter, reflecting an increase of EUR 200 mln in assets and a decline of EUR 496 mln in liabilities. 

Net other investments showed a total outflow of EUR 286 mln, an increase in net assets. Assets and liabilities decreased by EUR 1.18 bln and EUR 1.46 bln, respectively. 

For the whole of 2017, the net external financing capacity based on the current and capital account was EUR 5.11 bln adjusted for seasonal affects and just marginally different using unadjusted data. Both figures were down from around EUR 6.82 bln in 2016.

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