Hungary’s GDP grew by 0.2% year-on-year in the second quarter of 2025.Continue reading
The population’s assessment of their own financial situation has improved, and companies are experiencing a more favorable business environment, reads a survey by Századvég research institute published on Tuesday.
According to the summary, the population’s economic expectations declined minimally (minus 0.4 index points), while companies’ economic sentiment stagnated in July, compared to the previous month’s figures. Thus, the public index, interpreted on a scale between minus 100 and plus 100, changed to minus 19.2, while the corporate index remained unchanged at minus 16.5 index points. The economic index remains in negative territory, largely due to the prolonged Russian-Ukrainian war and the uncertainty generated by economic sanctions, the research institute points out.
A significant improvement in economic expectations is likely to occur if the war ends, inflation stabilizes within the central bank’s target range (between two and four percent), the interest rate environment becomes even more favorable, the European economy strengthens, and energy prices remain low,
Századvég writes.
According to the survey, one sub-index of the consumer confidence index strengthened, with the assessment of the financial situation changing from minus 12.8 to minus 11.1 index points. At the same time, the sub-indices indicating the assessment of the employment situation, the perception of the economic environment, and the perception of inflationary processes weakened.
When examined by age group, the index strengthened by 0.6 index points in the 18-29 age group and by 0.8 index points in the over-60 age group, while it weakened by 0.6 index points in the 30-39 age group, a 2.3-point decline among those aged 40-49, and a 2.1-point decline among those aged 50-59.
Overall, the 18-29 age group has the most favorable economic outlook, while the 50-59 age group has the least favorable.
In the case of the corporate survey, two sub-indices rose in July, while two declined. The business environment indicator and the economic environment sub-index improved, while the production environment sub-index and the industry environment sub-index weakened. The most positive change in July 2025, was in companies’ expectations regarding the forint-euro exchange rate.
Breaking down the companies by sector, the economic sentiment improved in two of the sectors surveyed, stagnated in one, and deteriorated on average in two.
The business climate index strengthened in construction and trade, stagnated in services, and declined in agriculture and industry. In July, the business climate was best in construction and weakest in industry.
Via MTI, Featured image: Pixabay