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.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
