Ministry takes issue with Fitch downgrade
Hungary’s government does not agree with an analysis of Hungary’s situation by Fitch Ratings, the National Economy Ministry said on Friday, after Fitch revised its outlook for the country’s sovereign rating to "negative" from "stable".
The ministry said the 2012 general government deficit target of under 3% of GDP is achievable, adding that 2.5% of GDP target for 2012 would be kept in spite of Fitch Ratings’ stand.
In the statement on its revision, Fitch said it projected a general government surplus of around 3.5% of GDP in 2011, helped by big one-off factors, such as the transfer of private pension fund assets to the state, but it projects a general government deficit of 3.3% of GDP for 2012, noting that the government’s 2.5% deficit target for that year is "challenging" because of "the weak growth outlook, the uncertain costing and implementation of some measures and potential reform fatigue".
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.