KSH: Hungary trade balance shows EUR 475 m deficit in April – UPDATE

Hungary’s trade balance showed a 475 million euro deficit in April, the Central Statistical Office (KSH) said in a first reading of data released on Wednesday.

Hungary, an export-driven economy where trade surpluses are the norm, had a trade deficit for the tenth month in a row, KSH said.

Exports rose by an annual 12.1 percent to 11.052 billion euros and imports climbed by 21.1 percent to 11.527 billion.

Trade with other European Union member states accounted for 77 percent of exports and 70 percent of imports.

Further deterioration expected

Magyar Bankholding chief analyst Gergely Suppan said with growing investments and consumptions the foreign trade balance is expected to deteriorate further, but in the second half of the year it could stabilise with the easing of the global chip shortage and new production capacities coming online. Because of the war in Ukraine, the trade balance could end up being negative for this year, after a 1.9 billion euro surplus in 2021, he added.