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Big trade surplus “payoff” of crisis

Hungary's big trade surplus is a positive result of the crisis, but still steeply declining exports show recovery will be slow, analysts told MTI after the Central Statistical Office (KSH) published fresh trade balance data.

Hungary had a €548 million trade surplus in July, compared to a €424m deficit in the same month a year earlier, KSH said in the morning. Exports, calculated in euros, fell 18%, while imports dropped an even faster 32%.

Raiffeisen Bank's Zoltán Török said the 18% decline in exports would have appeared worse had a faster fall in industrial output not been shown in data published on Tuesday. The signs of a recovery on the country's biggest export markets are still not showing up in export data, which augurs a slow recovery for Hungary, he added.

Buda-Cash Brókerház's Zoltán Reczey said the surplus beat market expectations. The trade surplus -- the result of imports falling at a faster rate than exports -- is the “payoff” of the crisis and cannot be sustained in the long term, he added. (MTI – Econews)