Pointing to strong economic growth and a commitment to lower fiscal deficits as well as the government debt burden, Moody’s Investors Service called Hungary’s credit profile stable at Baa3. Public debt stood at 70.2 percent of GDP at the end of last year. Moody’s anticipates 3.2 percent growth in 2020 and 2021. “We expect that strong nominal GDP growth will support a steady decline in government debt to around 64 percent of GDP by 2021,” said Steffen Dyck, vice president and senior credit officer at Moody’s. “Challenges to longer-term growth beyond 2021 stem from a tight labor market, skills mismatches and slowing inflows of EU funds.”
