Fitch warned the Hungarian government but gave a little leeway before junk status

Fitch Ratings evaluates Hungary's 2027 budget plan, noting its alignment with euro adoption criteria by 2030. The agency emphasizes the importance of the government's ability to implement promised budget adjustments after a projected deterioration in 2026. Key challenges include balancing proposed spending increases with necessary savings to reduce public debt. Fitch's outlook indicates that Hungary's credit rating is at the lower end of the investment grade, with potential downgrades looming. The agency forecasts a budget deficit of 5.4% for next year, optimistic compared to the government's target, but sees a path to a sub-3% deficit by 2030. Economic growth is projected at 2.5% in 2027, aligning with government estimates.