Hungarian CEOs’ surprising experiences with foreign workers

What are Hungarian business leaders afraid of? What are their experiences with foreign workers? What are the prospects for 2024? Do CEOs want euros? These are some of the most burning questions in business right now in Hungary. Tamás Lőcsei, CEO of PwC Hungary, an audit and business advisory firm, answered these questions.

There are no indications that Hungarian workers might be laid off to be replaced by foreigners, Tamás Lőcsei, CEO of PwC Hungary, told Növekedés.hu. The CEO also talked about the economic outlook for the year and the experiences with foreign workers, among other things.

Hungarian business leaders are more optimistic now

According to Lőcsei, Hungarian CEOs are confident in Hungarian GDP growth because they see the volume of investment coming into the country in recent years. What is more, many announced projects could start production this year, which would help boost the economy.

PwC’s latest CEO Survey reveals that CEOs are relieved and feel that the country is over the economic difficulties, rather than the pessimism of last year. They feel like 2024 could be a better year for exports compared to 2023.

What are business leaders afraid of?

Annual inflation in Hungary over the last 5 years. Source: bankmonitor.hu

“Our research shows that the impact of inflation is what most people fear,”

Lőcsei said. This is followed by the shortage of skilled labour, then macroeconomic volatility, geopolitical conflicts and cyber risks, with almost the same results, he added. (It is important to note that the survey was conducted at the end of last year when inflation was much more unstable than now.)

Can labour shortage be addressed with foreign workers?

According to Lőcsei, the experience of foreign workers is quite positive. “It is important to underline that these workers come to Hungary in an organised way, after considerable screening,” he explained. Many manufacturing companies employ foreign workers in Hungary. In fact, in this segment companies employing guest workers are in the majority.

At the same time, I think that the Hungarian workforce will not be disadvantaged by all this. There are no indications that Hungarian workers might be laid off to be replaced by foreigners,

Lőcsei highlighted.

Is the introduction of the euro important for CEOs?

Photo: Pixabay

“This issue is not their focus at the moment,” Lőcsei said about the euro introduction. He said that CEOs do not want it to happen in the near future.

The euro has its advantages, of course, but the general view is that it is better to introduce it at a time when the Hungarian economy is stronger,

Tamás Lőcsei concluded.

Foreign workers: new draft resolution targets this demographic

As we wrote earlier, according to a new draft resolution, third-country nationals who wish to remain in Hungary to work must demonstrate a comprehensive understanding of Hungarian history and culture. The new law proposes that foreign workers undergo an examination on Hungarian culture and history. However, even so, permanent stay is still not on the cards.

The examination is structured around eight key points, including Hungary’s geopolitical position, national symbols and festivities, significant milestones in the country’s history, and more.

Read also:

• Draft regulation in Hungary: foreign workers can only stay if they are familiar with Hungarian culture
• Tens of thousands of guest workers cannot enter Hungary: large investments in trouble