Contrary to a report published by the European Commission, the National Economy Ministry said there are no short or long-term risks regarding Hungary’s state debt.
The ministry said in response to the EC’s Debt Sustainability Monitor report that the government is committed to fiscal discipline, including reducing public debt.
The ministry said the fundamentals of the Hungarian economy are stable, the FX composition and ownership structure of the public debt are sufficiently diversified, and the financing of state operations is secure and stable. This is also reflected in the ratings of credit rating agencies, which continue to unanimously put Hungary in the investment grade level, reflecting unwavering confidence.
The ministry said that continuing its earlier practice, when planning the 2026 budget, the government is calculating with a decreasing deficit and decreasing public debt.
The ministry noted that in November 2024, the EC forecasted that the state debt level in Hungary could reach 74.5pc of GDP at the end of 2024, while in fact the actual figure could have been significantly lower. Thus, the EC’s forecast could have shown a significant difference even in such a short term.
In its report, the EC said that as a baseline scenario, Hungary’s gross debt ratio as a share of GDP could be at 74.5pc both in 2024 and 2025, decrease to 73.7pc in 2026 and climb to 74.2pc in 2027.
The National Economy Ministry said that overall, its position is that the findings in a report of the EC cannot be supported by factual data.
