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Hungary net external financing capacity at 1.9% of GDP in Q4

Adjusted for seasonal effects, Hungaryʼs net external financing capacity was EUR 651 million, or 1.9% of quarterly GDP, in the fourth quarter of 2018, state news agency MTI reported, citing balance of payments data published by the National Bank of Hungary (MNB) on Monday.

The adjusted Q4 surplus was up from the third quarter, when it reached EUR 562 mln.

The unadjusted net external financing capacity came to EUR 100 mln in Q4, down from EUR 162 mln in the third quarter of the year.

In Q4, the unadjusted current account had a deficit of EUR 349 mln, the capital account a surplus of EUR 449 mln and the financial account a deficit of EUR 1.02 billion.

The seasonally adjusted deficit on trade in goods amounted to EUR 556 mln in Q4, still smaller than the EUR 786 mln deficit in Q3. Exports of EUR 23.39 bln and imports of EUR 23.41 bln in Q4 exceeded their levels in the previous quarter.

The surplus on trade in services was EUR 1.90 bln, exceeding the EUR 1.81 bln surplus recorded in the previous quarter.

The adjusted primary income deficit of EUR 1.20 bln in Q4 compared to a EUR 1.30 bln deficit in Q3. The deficit of secondary income grew from EUR 28 mln in Q3, to EUR 252 mln in Q4. 

Using adjusted figures, net transfers from the European Union totaled EUR 997 mln in Q4; using unadjusted data, net primary income was EUR 432 mln, but net current transfers under secondary income were a negative EUR 94 mln.

According to financial accounts data, FDI transactions showed a net inflow of EUR 1.06 bln in Q4 as outward FDI rose by EUR 1.01 bln and inward FDI rose by EUR 2.08 bln.

Portfolio investment transactions showed a net inflow of EUR 1.10 bln in the fourth quarter, reflecting a decrease of EUR 16 mln in assets and a rise of EUR 1.08 bln in liabilities.

Net other investments showed a total inflow of EUR 1.40 bln, a decrease in net assets. Assets and liabilities decreased by EUR 2.27 bln and EUR 0.86 bln, respectively.

For the whole of 2018, the net external financing capacity based on the unadjusted current and capital account was EUR 2.96 bln.