Government expenditures related to the coronavirus pandemic lifted Hungaryʼs state debt relative to GDP to 70.3% at the end of the second quarter, according to a second reading of data released by the National Bank of Hungary (MNB).
The ratio was lowered from 71.9% in a preliminary reading published on August 17. State debt relative to GDP was up from 65.7% at the end of Q1 and 65.4% at the end of last year.
Hungaryʼs constitution stipulates that year-end state debt relative to GDP must decline until the ratio reaches 50%, but the government anticipates the level will rise this year because of pandemic defense and economic stimulus. In absolute terms, state debt stood at HUF 33.2 trillion at the end of Q2.