Hungarian current account falls into deficit in Q2 2019 on strong rise in domestic consumption

The Hungarian current account slipped into a deficit in the second quarter. Even if the Hungarian currency regained some ground recently, the recent release of the key fundamental data indicates towards a different direction.

As the National Bank of Hungary’s balance-of-statistics have shown today, the Hungarian current account surplus turned into a deficit in the second quarter, driven by the solid domestic consumption and the rising volume of imports. Therefore, the four-quarter aggregated sum of the current accounts saw a deficit of EUR 378 million.

“This is still a modest deficit, but in our view more deterioration of the Hungarian external balance will come”, said KBC Market Research in a report.