Standard & Poor’s has once again confirmed Hungary’s sovereign credit rating, maintaining the country’s investment-grade status. With this decision, all three major rating agencies—Fitch Ratings, Moody’s, and Standard & Poor’s—continue to recommend Hungary as an investment destination, the Ministry for National Economy announced late Friday.
According to the ministry, this reaffirmation reflects the continued confidence in Hungary’s economic performance, which is also evident from the success of its recent bond issuances. Hungary’s 2024 foreign currency bond auctions have been oversubscribed several times, with strong demand for issues in euros, US dollars, and Chinese renminbi. ‘Despite global challenges, investors from both East and West continue to view Hungary as a reliable partner and a financial meeting point,’ the statement read.
The ministry noted that sustained inflows of foreign direct investment (FDI) further underscore market confidence. Political stability, advanced infrastructure, skilled labour, and high profitability continue to make Hungary attractive to global investors. While Western investment remains significant, the share of Eastern capital—from China and South Korea in particular—is growing. Following the September opening of BMW’s Debrecen plant, major projects by companies such as CATL, BYD, SEMCORP, and EcoPro are set to further boost Hungarian economy.
Hungary’s economy, the ministry stressed, stands on solid ground. Employment remains near record highs, with around 4.7 million people working and unemployment at historic lows. Real wages have been rising for more than 18 months, driving household consumption and tourism. Visitor numbers surpassed 15 million by the end of September, setting the stage for another record tourism year in 2025.
Public finances remain stable, the ministry said. Hungary is pursuing Europe’s largest tax reduction programme while maintaining strict fiscal discipline and a commitment to reducing both the budget deficit and public debt. The government’s fiscal strategy rests on four principles: the deficit must decline each year, debt must remain on a sustainable path, Hungary must avoid returning to the EU’s excessive deficit procedure, and the primary balance should stay near zero.
The ministry identified two major external risks to Hungary’s economy: Germany’s prolonged slowdown and the EU’s flawed trade deal with the United States. It criticized Brussels for what it described as misguided economic policies, continued support for war over peace, and prioritizing aid to Ukraine over European competitiveness. The Hungarian government, by contrast, is focusing its resources on families and domestic businesses, pursuing short-term consumption-driven and long-term investment-driven growth.
Hungary is also taking proactive measures to stimulate the economy without waiting for EU action. The 100 New Factories initiative has been expanded to 150 projects, and the newly launched Demján Sándor Programme will provide more than 1.4 trillion forints in funding, including grants, low-interest loans, and a 100-billion-forint equity programme to help small and medium-sized enterprises scale up and increase productivity.
The government is also introducing a new 4+1 economic support package to help businesses navigate uncertainty caused by Europe’s weak economy and unfavourable trade conditions. The plan includes preferential financing for SMEs, such as fixed 3 per cent SZKP loans and the 1+1 Programme, further tax cuts, new trade and consumer protection measures, and initiatives to promote the use of artificial intelligence in business operations.
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