K&H Statement
On Monday, November 3 and Tuesday, November 4, several media outlets misinterpreted the macroeconomic assessment presented by Dávid Németh, Chief Economist at K&H, during Monday’s press conference. For this reason, K&H reiterates its position in order to avoid any misunderstanding.
During the press conference, Dávid Németh stated that the 2024 budget was still in good shape, as the primary balance (excluding interest payments) was roughly in equilibrium. However, the current outlook suggests that the primary deficit could rise to 2-2.5% of GDP by the end of 2026, and with interest charges of 3.5%, the total deficit would be 6% if no action is taken.
If such measures are not implemented, credit rating agencies could downgrade Hungary’s rating.
As an independent financial institution, K&H emphasizes that regardless of which political party wins the parliamentary elections next April, fiscal adjustments may be necessary to avoid a downgrade.
At the press conference, Dávid Németh merely provided examples of potential measures that could help restore fiscal balance.
K&H is an independent financial institution, and as such, its operations and business policy are fundamentally based on the principle that it strictly and exclusively comments on business and economic events and developments. This also means that K&H never expresses political opinions under any circumstances.
contact person
K&H Communications Directorate
- sajto@kh.hu