Fitch Ratings has revised the outlook on Hungary's long-term foreign and local currency issuer default ratings to positive from stable and affirmed the IDRs at 'BBB-'.
Fitch said a combination of high current account surpluses, European Union inflows and private and public sector external deleveraging had contributed to a marked improvement in Hungary's net external debt (NXD) position, to an estimated 9% of GDP in 2017 from 53% in 2014.
It said NXD was gradually converging towards the 'BBB' peers' median of -1% of GDP in 2017, although measures of external liquidity remained substantially weaker than the median.
Fitch said the current account surplus averaged 3.7% of GDP in 2014-2016, primarily reflecting a still low level of domestic demand and the expansion of the manufacturing export base.
Fitch said it expected the current account balance would trend lower but remain positive, at a forecast 1.6% of GDP by end-2019.