Listen to the audio version of this article (generated by AI).
Listen to the audio version of this article (generated by AI).
The agency highlighted that the administration intends to implement major reforms in budgeting, investment policy, economic governance, and the judiciary, and has announced a goal of joining the eurozone by 2030.
Despite these commitments, S&P warned that the 2026 budget deficit could exceed 6.5% of GDP, reflecting significant uncertainty around fiscal consolidation, according to independent news organization Telex. Analysts also noted that pre‑election spending may push the 2026 deficit to 6.75% of GDP, while high debt and interest costs continue to limit policy flexibility.
The agency projects 1.6% economic growth for 2026 and 2.4% for 2027, supported by stronger consumption and a potential rebound in investment. S&P added that Hungary’s debt ratio could peak at 74% of GDP in 2027, before gradually declining.
The decision follows that of the ratings agency Moody’s, which last week affirmed Hungary’s “Baa2” sovereign credit rating while keeping its “negative” outlook, citing both improving EU relations and persistent fiscal weaknesses. Fitch, the last of the big three agencies, is due to conduct its review on June 5.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
