Press roundup: a left-wing columnist accuses the Orbán govt of overspending before the elections. A right-wing one finds govt’s economic path reasonable.
Capital flows out of emerging-market stocks and bonds as U.S. real yields climb and dollar strengthens.
Pressure is building in some emerging markets as brightening U.S. growth prospects prompt investors to pull capital out of economies that look less robust.
The yield on Brazil’s 10-year local currency bond jumped to 9.65% on Wednesday, from 6.96% at the end of 2020. That is the highest since the peak of the market tumult in March 2020, according to FactSet. Russian and Mexican bond yields also recently hit their highest levels in a year. When bond prices fall, yields rise.
February and March saw the biggest net outflows from emerging-market bonds since the pandemic emerged last spring, with investors withdrawing about $3 billion in each month, according to data from the Institute of International Finance. The selloff was heaviest for debt issued by South Africa, Indonesia and India. Fund managers also pulled out a combined $670 million from stocks in developing countries over
Press Roundup: Government to Abolish Income-tax for Under-25s
A left-wing commentator accuses the Prime Minister of cynicism after he offered exemption from income tax to young Hungarians. A conservative pundit, on the other hand, thinks that the tax exemption will benefit both the Hungarian economy as a whole, and the Roma minority.
Background information: Prime Minister Orbán announced that Hungarians under 25 will be exempted from paying income tax from 2022. The Prime Minister said the tax exemption will be available for salaries below the average wage, and the annual cost of the tax cut will amount to 130-150 billion Forints (approximately 0.3 per cent of GDP).