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The current account deficit was 847 million euros in the second quarter, compared to 317 million euros in the first quarter and 446 million a year earlier, while it closed with deficits of 345 million euros and 612 million euros in the third and fourth quarters of last year, respectively. Based on data from the National Bank of Hungary (MNB).
The capital account balance showed a surplus of 657 million euros in the second quarter, mainly from remittances from the European Union, 90 billion more than in the previous quarter and 183 million more than a year earlier.
From the combined balance of the balance of payments and the capital account, the indicator used to characterize the country’s external financing position has been negative for the first time since the first quarter of 2009. Net financing without adjustment was 190 million euros , excluding seasonal effects, 146.2 million euros or 0.5 percent of quarterly GDP.
The net debt of the national economy was 11.3 billion euros at the end of June, 8.2 percent of the total GDP of the last four quarters. Net debt increased by 2,100 million euros compared to the end of the previous quarter.
Central bank reserves amounted to € 30.2 billion at the end of June. Reserves increased 4.4 billion euros in the second quarter.
The Covid-19 spread had a significant negative effect on the financing demand components in the second quarter of this year, the MNB wrote in its report.
Income from exports of goods decreased by 5,186 million euros compared to the first quarter, while import expenses decreased by 4,590 million euros, increasing the deficit by 596 million euros to 788 million euros. The surplus in service income also fell significantly, by 785 million euros compared to the previous quarter, and showed 650 million in assets. Primary revenue withdrawals were 62 million euros lower than in the previous quarter, 475 million euros. Income from FDI inflows decreased by € 101 million, and portfolio investment withdrawals increased by € 5 million compared to the first quarter, but by € 622 million and € 370 million, respectively, over the year previous.
Through direct capital investment, there was a net inflow of € 269 million in the second quarter: foreign investment in Hungary increased by € 739 million and Hungarian investment abroad by € 470 million.
Book cover: Bődey János / Index
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