In the past two years Hungary has achieved significant results regarding general government debt, recently one of the most widely observed indicators all around the world.

While most Western European countries are weighed down by an increasing debt-to-GDP ratio, general government debt in Hungary at the end of the second quarter of 2012 amounted to 77.7 percent of GDP, which constitutes a decline of more than 4 percent compared to the first quarter of 2012. Meanwhile, this indicator increased on average by 8 percent in EU countries.

As a sign of confidence in the sustainability of Hungarian general government debt, the amount of government securities held by non-residents and domestic households has been breaking records.

In accordance with Government objectives the fiscal deficit is expected to remain low this year and the years to come, therefore a further decline of the Hungarian debt indicator can be anticipated and that will put the country on a sustainable debt path.

For further information please see the file attached.

(Prime Minister’s Office)