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Hungary current-account deficit EUR 230 mln in Q3

Hungary had a current-account deficit of EUR 230 million in the third quarter, data released by the National Bank of Hungary (MNB) on Friday show, Hungarian news agency MTI reports.

Photo: Parlanteste/Shutterstock.com

The trade balance showed a EUR 1.11 billion deficit in trade of goods, but a EUR 2.49 bln surplus in trade of services.

Primary income showed a deficit of EUR 1.29 bln and secondary income a deficit of EUR 303 million.

For the period Q1-Q3, the current account deficit reached EUR 324 mln.

The capital account showed a surplus of HUF 342 mln in Q3, including EUR 294 mln in transfers from the European Union.

Hungaryʼs unadjusted net external financing capacity - the combined balances of the current and capital accounts - reached EUR 112 mln in Q3, down from EUR 520 mln in Q2. Hungary had a net financing requirement of EUR 31 mln in Q3 2018.

The financial account had a deficit of EUR 175 mln. Inflows of EUR 182 mln and EUR 498 mln were registered by other monetary institutions and other sectors, respectively. Outflows of EUR 79 mln and HUF 425 mln were registered by the general government and MNB, respectively.

FDI in Hungary came to EUR 222 mln and portfolio investments reached EUR 450 mln. Other investments stood at EUR 166 mln.

MNBʼs international reserves rose by EUR 668 mln in Q3, the central bank noted.

Hungaryʼs net foreign debt, excluding FDI debt instruments, amounted to EUR 11.8 bln at the end of September, down from EUR 12.1 bln at the end of June and also down from EUR 12.1 bln in September 2018. Net foreign debt was the equivalent of 8.4% of GDP in the four quarters to the end of Q3.

Gross foreign debt stood at EUR 78.6 bln, up from EUR 76.6 bln in Q2 and EUR 74 bln in Q3 2018.