The current account surplus amounted to EUR344m in November, the National Bank of Hungary (NBH) reported preliminary monthly balance of payments data. There were considerable surpluses on merchandise trade and net services during the month, in our opinion related to the slight recovery in exports and a continued positive effect from favorable terms of trade. Net current outflows of primary income amounted to EUR417.6m, representing repatriated profits and to a lesser extent, income on portfolio investments by non-residents. EU funds net inflows in the current account were EUR83.3m, similar to the average from the recent months. Net EU fund inflows under the capital account were quite low, amounting to just EUR37.6m in November.
Net financial account flows, excluding the change in reserves, were incoming in November. FDI inflows were relatively large, reflecting a large amount of reinvested earnings as well as some capital in transit flows. Portfolio investment flows were outgoing because of non-residents exiting the domestic government security market. Gross debt-related financial flows were small in November but net outflows were relatively large because of non-financial companies exporting deposits abroad and because of increased receivables of EU funds.