This potential is largely tied to the political climate between the two nations.Continue reading
There is no denying the close ideological alignment and friendship between Hungarian Prime Minister Viktor Orbán and former U.S. President Donald Trump, a relationship that has sparked both political and economic optimism in Hungary. As Trump prepares for his return to the White House, Hungarian investors are seeing a boost, with stock market rallies both locally and abroad. This positive reaction contrasts sharply with the pessimism in many European capitals, writes Világgazdaság.
For Hungarian investors, Trump’s policies, including tariffs or NATO funding increases, are less concerning compared to European nations like France or Germany, where such changes would likely cause economic distress. Instead, Hungary’s focus is on Trump’s new trade strategies and his plans for Europe, which have the potential to shift the economic landscape significantly.
Prime Minister Viktor Orbán’s recent trip to the United States, where he was accompanied by Gellért Jászai, president of telecom company 4iG, provided a major boost to the Hungarian market.
Viktor Orbán and Donald Trump (L-R). Photo: MTI/Miniszterelnöki Sajtóiroda/Fischer Zoltán
The two met with Elon Musk, discussing possible business deals that immediately sparked a 13 percent rise in shares, marking the largest jump in over two years.
This surge reflects the strength of the Trump-Orbán alliance and its potential to uplift entire sectors of Hungary’s market.
In addition to business ventures, analysts see further growth if Trump succeeds in his promise to broker peace in the Russia-Ukraine conflict. Since the war remains the primary obstacle to Hungary’s economic growth, a resolution could significantly benefit the market.
Major Hungarian companies such as OTP, Richter, and MOL, which still have business interests in Russia, could also see positive impacts from the recovery of the Russian economy.
However, optimism is not universally shared. Concerns about the uncertainty of foreign investment and EU economic challenges persist. Yet, Hungary’s largest companies, with significant exposure to Eastern and Southern European markets, remain relatively insulated from potential disruptions.
During Trump’s first term, Hungary’s stock market gained 33 percent in dollar terms, and despite the risks, many believe the country could continue to benefit from a weakening forint and strong foreign market ties.
As of December 20, 2024, the Budapest Stock Exchange, represented by the BUX Index, has experienced significant growth since the beginning of the year. The BUX Index has increased by approximately 29.77% since January 1, 2024, reaching a value of 78,665.14 points. In November 2024, the BUX Index closed at 78,374.1 points, up from 73,883.0 points at the end of October 2024.
Via Világgazdaság; Featured image via Facebook/Péter Szijjártó