November current account deficit came out better than expected again at EUR 48m. Foreign trade deficit reached mere EUR 154 m, which is even less than last month. The improvement of foreign trade balance stems from upbeat exports that are maintaining growth despite the stronger forint and slowdown in the Western Europe. Stronger imports of consumer goods are balanced by weaker investment imports. The second reason for the low C/A deficit is the surplus of travel that has increased by 15% y/y for the last 11 months.
From the start of the year, the C/A deficit reached mere EUR 344 m, which is 67% lower than in the same period last year. In December, the deficit is traditionally higher due to profit repatriations, however, the estimated full year deficit should fall to mere 1.7% GDP. The current account is no problem for Hungary at present.
(Jakub Dvorak- CSOB)