Hungary's current account surplus twice as large as expected
According to data published by the National Bank of Hungary (MNB) on Thursday,
the country's current account balance showed a surplus of €1.391 billion (£1.2 billion) in the second quarter.
This follows an upwardly revised surplus of €1.361 billion in the previous quarter. The figure for the first quarter was revised from the previously reported €1.141 billion.
Analysts surveyed by Reuters had predicted a surplus of only €800 million for the second quarter, so the actual result significantly exceeded market expectations.
In Q2, Hungary’s net lending (i.e., the combined balance on its current and capital accounts) amounted to EUR 1 826 million seasonally adjusted, equal to 3.4% GDP. The current account balance was EUR 1,448 million seasonally adjusted, while the seasonally adjusted capital account balance was EUR 353 million. This means that the country continues to generate a surplus in its external economic relations, which favours the forint and promotes economic stability.
Hungary’s net foreign debt, excluding FDI debt instruments, amounted to EUR 30.85 million at the end of June 2025 (14.8% as a percentage of the GDP in the last four quarters).
The net external debt increased by EUR 247 million compared to the previous quarter, due to the EUR 561 million debt-increasing effect of revaluations and other changes in volume. International reserves grew by more than EUR 1.4 billion to over EUR 47 billion by end-June, strengthening the country's financial safety net.
Based on the seasonally adjusted data in Q2 2025 of the components of net lending both the level of export and imports of goods decreased compared to the previous quarter. There was an EUR 93 million surplus on the net of goods. Exports amounted to EUR 29.5 billion and imports amounted to EUR 29.74 billion. The surplus of services increased compared to the previous quarter, of which travel reached EUR 1.01 billion and non-travel services amounted to EUR 1.76 billion.
In Q2, the deficit of primary income increased to the previous quarter and the secondary income balance became surplus: the primary income decit was EUR 1.58 billion, while the secondary income surplus was EUR 15 million. The capital account balance reached EUR 353 million.
In the second quarter of 2025 the net outflows of direct investments totalled EUR 1.03 billion, meaning more capital left the country than entered it.
While FDI abroad reduced by EUR 128 million, FDI in Hungary also decreased by EUR 1.16 billion. Within FDI abroad, equity investment increased by EUR 349 million while reinvested earnings decreased by EUR 6 million. Debt instruments showed a net decline of assets by EUR 471 million. In the case of foreign direct investments in Hungary (net liability), equity investments decreased by EUR 1,050 million. Reinvestment of earnings decreased by EUR 1.61 billion, while debt instruments increased by EUR 1.5 billion.
In Q2, the net international investment position was EUR -82.16 billion (-39.3% of GDP in the last four quarters).
Total assets amounted to EUR 216.8 billion and the total liabilities to EUR 298.9 billion. Compared to the end of the previous quarter, the level of assets increased by EUR 1.99 billion and the liabilities by EUR 1.96 billion, thus the external balance position has not changed significantly.
Cover photo: Portfolio
