The Hungarian economy is doing well, and moody’s rating agency appreciated this. It has improved the country’s credit rating, which suits Viktor Orbán in the election campaign. Hungarians will vote on the composition of parliament in the spring of next year.
Hungary’s credit rating was increased from Baa3 to Baa2 by Moody’s. The improvement is undershot by expectations of solid economic growth this year and possibly next. This year, hungary’s economy is expected to increase by 7 to 7.5 percent, hungarian Finance Minister Mihaly Varga said on Friday.
Hungary’s rapid recovery came in the second quarter of this year, edthing as a result of relatively strong fiscal and monetary momentum. Moody’s stated that the medium-term outlook for the Hungarian economy for 2025 is based on a high level of investment. At the same time, he expects that the coronavirus epidemic will no longer be such a significant limiting factor for continued economic growth.
The credit rating increase plays into the hands of Hungarian Prime Minister Viktor Orbán, who will be defending his post as early as next spring. And improving the economic outlook also gives him room to further increase government spending, which he will seek to target by persuading as many voters as possible to vote for his Fidesz party.
