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Hungary state debt reaches 66.8% of GDP at end-Q1

Hungaryʼs gross state debt as a percentage of GDP reached 66.8% at the end of the first quarter, rising from 66.3% at the end of last year, preliminary financial accounts data released by the National Bank of Hungary (MNB) on Monday on show, according to a report by state news wire MTI.

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State debt fell from 69.5% of GDP at the end of Q1 2019.

Hungaryʼs constitution stipulates that year-end state debt relative to GDP must decline until the ratio reaches 50%.

The net financing requirement of the general government, which is a good approximation of the general government deficit, was HUF 945 billion or 2% of GDP in the four quarters to the end of Q1. General government net lending was HUF 89 bln in the first quarter alone, equivalent to 0.8% of quarterly GDP.

 First-quarter net lending of the central government amounted to HUF 124 bln. Local governments lent HUF 102 bln and the net borrowing of the social security funds was HUF 137 bln.

At the end of Q4, the non-consolidated stock of general governmentʼs assets and liabilities amounted to 35.2% and 87.3% of GDP, respectively. As a result, net liabilities of general government amounted to 52.1% of GDP at the end of Q1.

Net lending of households at HUF 2.472 trillion was equivalent to 5.2% of GDP in the four quarters to Q1. In Q1 alone net lending of households stood at HUF 569 bln, equivalent to 5.3% of quarterly GDP.

At the end of Q1 the non-consolidated stock of householdsʼ financial assets and liabilities amounted to 129.9% and 22%, respectively of GPD. As a result, the sectorʼs net financial assets amounted to 107.8% of GDP.