Following most economic analysts and the European Commission, the OECD has raised its outlook for Hungarian growth to 1.2% this year and 2.0% next from a previous 0.5% and 1.3%.
The investors seem to be more optimistic, too: Today the average yield on Hungary’s three month T-bill dropped to all-time low below 3% and yesterday Hungary issued USD-nominated bonds, worth of 2 billion US dollars, with a fivefold (!) bid-to-cover ratio and a 325 basis point spread over the US 10-year bonds (which is 20 basis points lower than what was achieved in the February issuance) Let’s note that this is the reaction of the markets despite that all three big credit rating agencies keep Hungary’s rating in the “junk” category…
And there’s more:
- Growing trade balance surplus (politicsinhungary.wordpress.com)
- Hungary’s inflation slowed down in October (politicsinhungary.wordpress.com)
- Massive upside surprise at GDP growth (politicsinhungary.wordpress.com)