The German-Hungarian Chamber of Industry and Commerce (DUIHK) presented its autumn business survey, highlighting challenges faced by the Hungarian economy amid global and regional uncertainties.
András Sávos, DUIHK President, emphasized that risks from weak German growth and potential US policies threaten Hungary’s economic stability.
Investment sentiment remains subdued, with more firms planning to cut spending than increase it. A quarter of companies aim to expand their workforce, while 19% foresee reductions, with industry showing higher hiring prospects (28%). Hungary’s labor costs rose 66% from 2019 to 2024, the highest in the region, though recent growth expectations have slowed, reflecting eased market tensions.
Competitiveness concerns persist as only 38% of firms reported improvements over five years, while 23% noted declines—the worst figure regionally.
Sustainability requirements are seen as enhancing competitiveness, yet Asian investors are perceived as major competitors, particularly in industry. The German economy’s stagnation and potential US tariffs could disproportionately harm Hungary, compounding these challenges.
Surveyed companies expressed widespread pessimism, with half rating Hungary’s economic outlook as poor, and just 10% anticipating improvement.
SMEs are particularly concerned, and demand trends remain the top risk, cited by 73% of respondents.
Hungary faces mounting challenges, but the labor market’s resilience offers some hope. However, as Dirk Wölfer of DUIHK warned, addressing investment and demand constraints will be crucial for restoring business confidence.
