Fitch: The national debt will peak higher, there will not be as much deficit reduction next year as the government plans

The Hungarian government's budget plan for 2027 aligns with its goal to meet Eurozone membership criteria by 2030, according to Fitch Ratings. The proposed budget aims to reduce the fiscal deficit from 7.5% to 4.9% of GDP. Fitch notes that while numerous small measures carry some execution risk, favorable financing conditions could support budget consolidation. The agency forecasts a deficit of 7.3% for this year, decreasing to 5.4% by 2027 and below 3% by 2030. Additionally, Hungary's debt-to-GDP ratio is expected to peak at 77.7% in 2027-2028, significantly higher than the median for similarly rated economies. Growth projections align with government estimates, predicting a 2.5% growth next year and around 3% by 2028.