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Hungarian Financial Markets Shrink as Pandemic Continues

Róbert Panyi 2020.07.17.

The total wealth of Hungarian investment funds shrank by HUF 400 billion (EUR 1.13 billion) since the beginning of the coronavirus pandemic. Although trust in the recovery of the economy is beginning to return, the financial sector remains to accomplish net negative returns as compared to the beginning of the year.

Since the beginning of 2020, Hungarian investment funds shrank by a total of HUF 400 billion, the largest short-term contraction in more than a decade. This is mainly the result of changes in the exchange rate of the national currency and the volatility of the domestic markets in recent months. The loss of confidence in the economy since the beginning of the pandemic has made investors withdraw a significant amount of capital even from the largest investment funds.

Gov’t Grants HUF 43 Billion to Large Companies in First Half of 2020

Although the financial markets started relatively strong in 2020, their performance have become increasingly volatile as the pandemic started to make its impact on the economy. Despite the recent 67% growth performed by the Hungarian stock market, the complete recovery of the financial sector has yet to come.