Although other specific effects have also played a part in how that composition has changed, the drop in FDI inflow may be taken as a warning sign, since Hungary has a high net liability position and its image has been further tarnished by worsening expectations regarding its prospects for growth.
A precondition for the improvement in debt and indebtedness indicators, as well as for a decline in the risk premium, is a strict and at the same time growth-friendly fiscal policy. The central bank’s responsibility is to contribute to the creation of a more stable economic environment through price stability and by the reduction in uncertainties that stem from inflation.