Hungary’s junk rating may remain unchanged
In its latest sovereign outlook report, Moody’s Investor Services confirmed the Central and Eastern European region’s stable outlook, which would suggest that Hungaryʼs rating may not improve beyond "junk" status.
The rating agency is expecting slowing GDP growth, a decrease in the budget deficit (2.5%) and debt burden by the end of 2016 in Hungary.
Earlier this year, Moody’s reported that Hungary’s vulnerability decreased, but structural problems such as rigidities in the labor market, weaknesses in the business environment and a weak banking system limit Hungary’s growth potential.
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