BUDAPEST – Rating agency Moody’s on Friday night upgraded Hungary’s sovereign credit rating from ‘Baa3’ to ‘Baa3’, making a strong comeback to the economy from the epidemic, which came as a boon for Prime Minister Victor Urban in the early 2022 election campaign.
Urban, the country’s longest-serving communist leader, could be Hungary’s first tight election in more than a decade.
Extending his campaign, Urban has reached out to voters, including $ 2 billion in income tax breaks for families, income tax exemptions for young workers, housing reform grants and additional pensions.
Since the Taliban seized power in Afghanistan, the nationalist leader has intensified his anti-immigration campaign and become increasingly radical in his social policies to protect traditional Christian values from Western liberalism.
Strong recovery allowed for additional spending despite calls from the central bank to tackle Hungary’s budget deficit quickly.
Moody’s said a strong return to growth and a medium-term outlook for the coming years would “help reduce fiscal consolidation and the government’s debt burden.”
“Overall, Moody’s expects very limited damage from the coronavirus epidemic,” the agency said in a statement.
Hungary’s economic growth is expected to reach 5.5 percent this year, Finance Minister Mihali Varga said on Friday.
Recovery has accelerated since the second quarter, helping with the financial and financial stimulus that has given loans to companies and families.
Moody’s said Hungary’s medium-term outlook until 2025 was supported by higher investment rates.
The central bank said on Saturday it expects a “positive credit rating path” for the economy after the upgrade.
In an August poll by think tank Javex Research, Urban’s Fides party received 37 percent of all voters, while the combined support for the six opposition parties was one percent.
The six-party Hungarian opposition coalition is currently in the first round of preliminary elections to choose Urban’s rival.
They have criticized the government for allegations of corruption, price hikes and widening of the wealth gap.
By Christina Than
This News Originally From – The Epoch Times