Hungary continues to achieve outstanding results in the fight against debt, and thus general government debt as of GDP declined by 6.4 percentage points in comparison to the second quarter of 2010. Socialist governments have never achieved so much.

According to currently available data, compared to Q4 2011 five countries managed to reduce their debt levels (Greece, Sweden, Latvia, Poland and Hungary). Greece’s debt reduction amounted to 18 percent as investors condoned part of the debt which, however, distorts comparison. Without that, Hungary’s decrease of debt was the largest with almost 2.4 percentage points off in comparison to Q4 2011.

The small increase in Hungarian general government debt figure of Q4 2012 is attributable to forint depreciation and the slightly negative economic growth, but the Government is still closer to winning the war against debt as compared to the second quarter of 2010 the ratio of general government debt as of GDP was reduced by 6.4 percentage points. Under the Socialist-led governments, debt was on an upward path.

The Government of Prime Minister Viktor Orbán cut general government debt inherited from Socialist governments from 85.3 percent to 79 percent of GDP.

(Ministry for National Economy)