Hungary current-account deficit EUR 775 mln in Q4

Image by Jessica Fejos

The trade balance showed a EUR 1.11 billion deficit in trade of goods, but a EUR 1.73 bln surplus in trade of services.

Primary income showed a deficit of EUR 1.2 bln and secondary income a deficit of EUR 195 mln.

For 2019 the current-account deficit reached EUR 1.21 bln.

The capital account showed a surplus of HUF 1.31 bln in Q4, including EUR 1.54 bln in transfers from the European Union.

Hungaryʼs unadjusted net external financing capacity - the combined balances of the current and capital accounts - reached EUR 540 mln in Q4, compared to a net external financing requirement of EUR 32 mln in Q3. Hungary had a net financing capacity of EUR 512 mln in Q4 2018.

Unadjusted data show the financial account had a surplus of EUR 246 mln in Q4. Direct investments showed a deficit of EUR 1.05 bln but portfolio investments had a surplus of EUR 697 mln. Other investments fell by EUR 81 mln but reserve assets rose by EUR 425 mln in Q4.

Hungaryʼs net foreign debt, excluding FDI debt instruments, amounted to EUR 11.1 bln at the end of December, down from EUR 11.9 bln at the end of September and also down from EUR 11.9 bln in December 2018. Net foreign debt was the equivalent of 7.7% of GDP in the four quarters to the end of Q4.

Gross foreign debt stood at EUR 75.5 bln, down from EUR 78.7 bln in Q3 and up from EUR 63 bln in Q4 2018.

The net external financing capacity of the country according to adjusted data was EUR 469 mln in Q4, up from EUR 354 mln in Q3 but down from EUR 623 mln in Q4 2018.

In the fourth quarter, the balance of the capital account was EUR 1.3 bln, offsetting the EUR 840 mln deficit in the trade in goods. The primary income deficit of EUR 1.21 bln and the secondary income deficit of EUR 136 mln both improved compared to the previous quarter.