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Preliminary Trade Surplus Widest Since September 2020

HUNGARY
  • Hungary's preliminary trade surplus widened to EUR1.089b in May from EUR366m in April, according to data released by the Central Statistical Office this morning, marking the largest surplus since September 2020. Exports rose by an annual 5.2%, a moderate increase, as in April, following a year of double-digit growth. Imports decreased by 5.4%, falling for the second month in a row after climbing for over two years.
  • S&P on Friday affirmed Hungary’s investment grade at BBB-, with a stable outlook. S&P expects domestic demand will contract this year but will be counterbalanced by increases in exports, with marginal real GDP growth of 0.1%. They say a significant share of EU funds to Hungary remain withheld pending reforms; but expect their partial release toward the end of this year.
  • The Finance Ministry will publish budget data for June at 0900BST/1000CET, a closely-watched indicator after the government accumulated a record shortfall in the January-May period.

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