The National Bank of Hungary published its October 2026 balance of payments report, finding that Hungary’s external position weakened in the first half of 2026 after a moderate improvement in 2025. The annual current account surplus fell to 1 percent of gross domestic product in the second quarter, primarily because weak German industrial production weighed on Hungarian exports and the goods balance. Including the capital account surplus, the economy’s four quarter net lending position stood at 1.6 percent of GDP, still significantly above the regional norm. The deterioration since mid-2025 mainly reflected a wider general government deficit. Household financial savings recovered in the first quarter of 2026, while the corporate sector returned to net borrowing in the first half as operating income declined and capital formation increased. Amid subdued net foreign direct investment inflows, net external debt rose to nearly 16 percent of GDP by mid-2026, also reflecting record foreign purchases of net forint denominated government bonds and National Bank of Hungary discount bills, as well as lower yields. International reserves exceeded EUR 60 billion in June, more than EUR 14 billion above short term external debt.
National Bank of Hungary reports weaker external position in first half of 2026 as net external debt nears 16 percent of GDP
The National Bank of Hungary reported that Hungary’s external position weakened in the first half of 2026, with the annual current account surplus falling to 1 percent of GDP and net external debt nearing 16 percent. Four quarter net lending remained comparatively strong at 1.6 percent of GDP. International reserves exceeded EUR 60 billion, more than EUR 14 billion above short term external debt.