Net external financing capacity at 8% of GDP in Q2

MNB

Adjusted for seasonal effects, Hungaryʼs net external financing capacity was EUR 2.204 bln, or 8% of quarterly GDP in the second quarter, balance of payment data published today by the National Bank of Hungary (MNB) show, according to Hungarian news agency MTI.

The adjusted Q2 surplus was up from the first quarter, when it reached EUR 2.003 bln. The Q2 surplus was down EUR 44 million from a year earlier. 

The unadjusted net external financing capacity came to EUR 1.844 bln in the second quarter, up from EUR 1.799 bln in the first quarter of the year.

Using adjusted figures, net transfers from the European Union totaled EUR 522 mln in Q2, while the figure also incorporating seasonal effects amounted to EUR 323 mln.

In terms of unadjusted values, net primary income for EU transfers amounted to EUR 335 mln, while the deficit on current transfers to and from the EU was EUR 87 mln. Funds received from the EU recorded as capital transfers came to EUR 75 mln.

The current account surplus reached an unadjusted EUR 1.767 bln in Q2. Adjusted for seasonal effects, the current account surplus came to EUR 1.817 bln, up EUR 440 mln in a quarter. A slightly higher surplus for the balance of goods and services both lifted the current account surplus.

The adjusted surplus in the balance of goods rose minimally to EUR 1.474 bln, while the surplus in the balance of services was up EUR 91 mln at EUR 1.501 bln. Adjusted primary income showed a deficit of EUR 864 mln and secondary income a deficit of EUR 283 mln.

For direct investments, outflows of funds amounted to EUR 647 mln in Q2 2016. Outward investments by Hungarian residents increased by EUR 59 mln, while inward investments by non-residents declined by EUR 587 mln.

Equity and reinvested earnings increased the value of foreign direct investment by EUR 115 mln and EUR 55 mln, respectively, in Q2. Capital withdrawals in the form of super dividends reduced foreign investment by EUR 64 mln. Transactions in debt instruments showed a net EUR 111 mln decrease.

Within inward investments, equity and reinvested earnings reduced the value of non-residentsʼ investments by EUR 822 mln and EUR 199 mln, respectively. Net transactions in debt instruments showed an increase of EUR 434 mln in net liabilities.

Portfolio investment transactions showed a net outflow of EUR 813 mln in the second quarter, reflecting a EUR 598 mln increase in assets and EUR 963 mln decrease in liabilities.

Other investments showed an outflow of EUR 3.783 bln. This marked a EUR 2.976 bln increase in assets and a decrease of EUR 807 mln in liabilities.

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