MNB notes negative impact of Russia-Ukraine conflict on Hungarian trade
The National Bank of Hungary (MNB) noted in a report today, the negative impact on the Hungarian economy following a decline in trade with Russia and Ukraine as a result of the escalation of the conflict between the two countries.
The economies in both countries have contracted due to the conflict, causing demand for Hungarian exports to decline, the MNB said. Sanctions against Russia imposed by the international community as well as import restrictions introduced by Russia may have reduced Hungaryʼs exports further, it added.
A depreciation of the Russian and Ukrainian currencies has reduced the revenue of Hungarian exporters to the countries, while falling oil prices may have reduced the value of Russian energy imported by Hungary, the MNB said.
Citing data from the Central Statistics Office (KSH), the MNB said first-quarter exports to Russia fell 30.4% year-on-year and were down by 1.3% to Ukraine.
Hungaryʼs trade deficit with Russia narrowed by 11% to HUF 1.024 trillion last year. Its trade surplus with Ukraine dropped 38% to HUF 131 bln during the period.
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