The Hungarian economy has been given another rating upgrade; Fitch has upgraded Hungary’s rating by one category, Finance Minister Mihály Varga announced. He added that today no one can deny any more that the Hungarian economy, thanks to the hard work of the Hungarian people, is doing better and better, and could increase also in the coming years.

Mr Varga said that already in 2011-2012 when credit rating agencies downgraded the country the government took the view that these decisions are not relevant in themselves and that the downgrades will be followed by upgrades. This is why we concentrated on economic growth, increasing employment and wages, the stability of the budget and the reduction of the country’s external vulnerability, the Minister added.

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He pointed out that in wake of these measures the market had already started recognising the meaningful improvement of the Hungarian economy in its very foundations some time before, and after Standard and Poor’s decision last week, Fitch, too, finally recognised the results Hungary had achieved. This can now be regarded as a genuine category upgrade.

Fitch’s analysis highlights that Hungary has achieved major results in the fields of the reduction of vulnerability, economic growth, the reduction of the country’s sovereign debt combined with a cut in the percentage of the foreign currency debt rate, and the improvement of competitiveness, the Finance Minister detailed. At the same time, the organisation also draws attention to the possible risks of the future, with special regard to signs indicating that the economy of the EU is slowing down and the challenges facing the labour market. The government recognised these threats in good time, and has already started developing measures which are designed to protect the economy.

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The series of upgrades comes as a result of the hard work of Hungarian people and businesses and a prudent economic policy, Mr Varga pointed out. He added that Hungary is on the verge of an important period, and therefore the government will continue to adopt measures which further strengthen the economy, help families raising children and simultaneously guarantee the balance of state finances.

(Ministry of Finance)