S&P revises Hungary’s outlook to negative, citing stagflation risks and fiscal slippage

S&P revises Hungary’s outlook to negative, citing stagflation risks and fiscal slippage

Standard & Poor’s has revised Hungary’s sovereign credit outlook from stable to negative, warning that increasing fiscal slippage and persistent inflation could threaten macroeconomic stability ahead of the 2026 parliamentary elections.

The decision places Hungary just one step away from a speculative rating, which signals a deterioration in confidence in the country's economic and fiscal stability. Hungary is on the verge of economic disasterAccording to the agency, the Hungarian economy is affected by a series of major risks, including increasing trade protectionism, slowing global demand, reduced capital inflows and rising financing costs amid a relaxed fiscal policy ahead o…

Hungary Pushed to Edge of Junk at S&P on Orban’s Spending Plans

Hungary’s sovereign credit grade outlook was lowered to negative from stable at S&P Global Ratings, pushing the nation to the edge of junk after Prime Minister Viktor Orban ramped up pre-election spending.

Within the EU, our country has spent the most on interest payments relative to its GDP in recent years, which is worrying for growth prospects.

Significantly lower GDP growth than the government has predicted in the coming years, a continuously decreasing current account surplus, higher budget deficits than planned, public debt rising again from 2026, higher inflation, falling and missing EU funds, and dangers surrounding interest expenses - this is the future projected for the Hungarian economy by Standard and Poor's on Friday, in which it downgraded the previously stable outlook assig…

Orbán cabinet: Hungary maintains investment-grade rating - DailyNewsHungary

S+P Global Ratings has affirmed its sovereign credit ratings on Hungary, putting the country in the investment-grade category along with the other big credit rating agencies, the National Economy Ministry said late on Friday. S+P credit ratings on Hungary S+P, which has delivered gloomy assessments of the performance of European countries recently, revised the outlook on the ratings to negative from stable. The government takes the position that…