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Hungary's foreign trade deficit narrows to EUR 2.84 bln in 2005 as exports outpace imports
( 23 / March / 2006 )
Hungary's foreign trade deficit came in at EUR 180.2 mln in December 2005 and totaled EUR 2.84 bln for 2005 as a whole, according to revised data released by the Central Statistical Office (KSH). The December deficit was marginally better than the preliminary figure of EUR 189 mln released on February 9, which in turn beat the consensus forecast of EUR 266 mln.
In 2005, Hungary's foreign trade deficit therefore narrowed by over EUR 1 bln, as export growth outpaced import growth at a respective 11.4% versus 8.3% year on year (y/y).
This also indicates that growth in foreign trade volumes slowed down since 2004, when exports were up 15.7% y/y and imports increased 13.4%. The improvement in the overall deficit last year was the result of opposing trends, KSH figures indicate. By trading partner, Hungary's surplus with the original 15 European Union member states expanded by EUR 900 mln, while Hungary reversed the previous year's deficits against new EU member states and non-EU European countries, showing a marked improvement of EUR 1.2 bln in the balance against these countries led by 40% export growth to new EU member states. At the same time, Hungary's deficit vis-a-vis Asian countries widened by EUR 1.4 bln to reach EUR 6.5 bln, on the back of 28% import growth from the region. Foreign trade by product group also showed divergent patterns throughout 2005. While Hungary's surplus in machinery and transport equipment improved by EUR 1.6 bln, skyrocketing oil and gas prices brought a EUR 1.3 bln deterioration in Hungary's deficit in the trade of energy carriers. Somewhat improving the overall picture was a EUR 700 mln narrowing of the deficit in manufactured goods. In the machinery segment, double-digit growth was seen in exports of power generation equipment, electric equipment and road vehicles, offsetting a decline in exports of consumer electronics appliances. Among manufactured goods, export growth was led by pharmaceutical, plastics and rubber products, offsetting a decline in textile and clothing exports. Food exports were boosted by a jump in sugar and grain exports, while import growth was led by meat products.