Budapest-traded stocks surprised many in 2016. Based on data from MSCI, the broad equity market delivered a stunning dollar-based return of 32%. Investors are drawn to Hungary because of its vibrant export backbone, despite uncertain growth in core European economies. About 90% of GDP can be attributed to exports, which are strongly tied to the automobile-parts supply chain. Investors have also been encouraged by strong risk assessment at the national level; the country is viewed as investment grade by the major credit agencies. We expect to see positive economic surprises here. In mid-December, the government revised economic growth forecasts upward to 4.1% in 2017 and 4.3% in 2018 due to higher wage-growth expectations. ■
Learn more at Hungary Today.
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Image shows Budapest skyline. Credit: Gina_sanders at Can Stock Photo Inc.