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Fresh current account data show favorable trends

Fresh first-quarter current account data published by the National Bank of Hungary early Wednesday show favorable trends, analysts told MTI.

They note that bigger profit repatriation may counter the improvement in the balance of trade in goods and services, resulting in a balanced current account by the end of 2010. CIB Bank's chief analyst György Barta said the fresh data show Hungary's financing position is entirely in order, which should have a positive effect on the country's risk assessment. Barta put the current-account around zero at year-end. The trade balance is likely to maintain a big surplus, though it could narrow as domestic demand grows and economic growth on export markets such as German slows in the second half, he said. Growing profit repatriation will also have an effect on the income balance and thereby on Hungary's foreign financing capacity, he added. Raiffeisen Bank's Zoltán Török also noted that units of foreign companies in Hungary were sending more money home to their parents as their profits grow. But this basically good trend counters the improvement in the balance of trade in goods and services, he added. Török said the current account balance would reach zero by the end of the year, following a small surplus (€185 million) in 2009. (MTI-Econews)