Business

Kabinka 3.0: The beauty of rural living with a modern twist

The iconic project of Hello Wood takes a step forward with its third-generation design, setting a new benchmark in the world of tiny-homes. Building on their expertise in timber construction, CLT house design, and the development of the Kabinka series, they’ve introduced Kabinka 3.0—first brought to life as a holiday home in Balatonakarattya. This new model goes beyond being a one-room luxury glamping pod or a cosy lakeside retreat. It’s a year-round home designed to meet the needs of a family of up to four.

Hello Wood Kabinka 3.0 — Kabinka 3.0. Photo: Hello Wood

The exterior of the first Kabinka 3.0 reflects the traditional charm of the Balaton region while embracing sleek, modern design elements. The blend of white and light wood creates an elegant and timeless look. The house is strategically placed on the plot to preserve a large, uninterrupted green area for outdoor activities. Panoramic windows at both ends allow natural light to flood the interior, creating a bright and airy living space. The attached terrace is an ideal spot for chilling, chatting with friends, or enjoying a glass of Balaton’s finest wine on a warm summer evening.

A side entrance leads into a small entrance hall, connecting to the spacious living-dining area, the bedroom, and the bathroom. Compared to earlier versions, Kabinka 3.0 offers a larger, more comfortable bedroom, while the open-plan living-dining space serves as the heart of the home for family activities. The fully equipped kitchen makes this cabin perfectly suited not only for vacations but also for everyday living. The upper gallery provides a cosy nook, perfect for reading, relaxing, or as a play area for children.

“We wanted a vacation home for our Balaton property as quickly as possible, so we looked for an efficient solution. We chose Kabinka 3.0 because it was the largest model with fully customizable design options. The house we received, beautifully furnished and equipped right down to the smallest decorative detail, went beyond all our expectations.” — Dr Veronika Vér & Dr Gábor Ősze, Clients

Kabinka 3.0 isn’t just about good looks and comfort—it also features sustainable and energy-efficient solutions. It’s a forward-thinking design that captures the essence of rural charm while catering to the needs of modern living. More than just a holiday home, this cabin is an excellent choice for long-term living, effortlessly combining functionality, sustainability, and outstanding aesthetics.

Photo gallery

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December 18, 2024

Shocking proposal: Hungary plans ban on non-EU guest workers starting 1 January

The Hungarian government is poised to implement significant restrictions on the employment of non-EU guest workers, starting 1 January 2025, according to 444.hu. A proposal to tighten regulations could be discussed at Wednesday’s cabinet meeting, marking a sharp shift in policy. The move aims to address growing domestic discontent over the increasing presence of foreign workers.

Key measures in the proposal

As to 444.hu reports, under the draft regulation, no new work permits would be issued to third-country nationals, except those from Georgia. Additionally, existing two-year work permits with a one-year extension option would lose this renewal flexibility. The new rules could effectively ban non-EU workers from Hungary, with only minimal exceptions.

Political pressure and public sentiment

The issue was a focal point during Monday’s parliamentary session. László Toroczkai, leader of Mi Hazánk, criticized the surge in guest workers, highlighting their dominance in food delivery jobs and accusing the government of prioritising foreign employment over opportunities for Hungarians. Prime Minister Viktor Orbán responded firmly, asserting:

“If their working hours are up, they must leave the country… As long as I’m Prime Minister, all guest workers will go home.”

Sources suggest the decision is largely political, driven by complaints from influential Fidesz politicians representing rural areas. They face mounting pressure from voters who are uneasy about the sudden influx of guest workers. Concerns include fears over public safety and the perception that foreign labour is taking jobs from locals.

Efforts to delay implementation

The proposal has already sparked behind-the-scenes lobbying. Some are pushing for a later implementation date—1 July 2025—while others advocate for exceptions for workers from countries like the Philippines, a significant source of labour for Hungary in recent years.

Context: Hungary’s guest worker market

Hungary already has the strictest guest worker regulations in Europe, as Orbán emphasised in parliament. If enacted, these new measures would solidify its position further, signalling a strong stance against labour migration from outside the EU.

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Featured image: depositphotos.com

December 18, 2024

Danube Startup Summit: Empowering the Next Generation of Young Entrepreneurs

Danube Startup Summit is an event for young people to hear valuable insights from successful people.

Innovation in Eastern Europe is undoubtedly struggling. Think of the brands changing our lives: huge businesses such as Apple, Meta, Windows, and Nvidia are all based in the United States, with little to none of this caliber based in Eastern Europe. A particularly startling statistic shows this economic discrepancy between unicorn companies per population in the U.S. as opposed to Europe and Eastern Europe. The term “unicorn company” refers to a privately owned startup valued at over US$1 billion, and currently, there are 712 based in the United States for a population of almost 350 million, while in the entirety of Europe, there are 202 for a population of nearly 750 million. Therefore, there are more than ten times as many unicorn companies per capita in the United States than there are in Europe, and even more staggeringly, for a population of nearly 300 million, there are only approximately 15 in Eastern Europe, almost 100 times less. Think of all the innovation, economic growth, and quality of life we miss out on due to stumped business growth and development.

We believe that the root of this cause can be majorly attributed to culture. The mere existence of places such as Silicon Valley or New York prove the effort and resources nations such as America put into developing startups, locating new ideas, and providing investment, something sorely needed in Hungary and Eastern Europe alike. Jared Schrieber, American Billionaire, Hungarian superangel, and a speaker at our upcoming event, said it best: “If I had started my business in Hungary, I would have failed right out the gate.” He expands by saying that in order for a Startup to grow into a unicorn, a symbiotic dance of dozens of key components must work in harmony. Great lawyers, investors, and partners are essential, just to name a few. The Danube Summit aims to help create this very ecosystem, specifically addressing the capture and mentorship of young talent, catapulting Eastern Europe into a competitive, valuable startup landmark.

On January 18th, 2025 our first event will take place at Engame Academy, featuring speakers such as Jared Schrieber, a Californian dollar billionaire tech entrepreneur; Nagy György, one of the wealthiest Hungarian entrepreneurs and founder of the Wallis group; and Daniel Balla, CPO and co-founder of Bitrise, Hungary’s very own unicorn company. Our amazing speakers give direct opportunities for mentorship and general advice and will share their difficulties and experiences in regards to successful entrepreneurship. Our attendees will also get the chance to meet amazing like-minded young entrepreneurs and build connections. If that weren’t enough, the event is free and is exclusive for anyone aged 21 and under, and we welcome all attendees with complimentary drinks and food. Let’s make our dreams into reality, and let’s help each other do so.

The Danube Startup Summit is funded by George Mason University and partnered with the Global Young Entrepreneur Society (GYES) and Daily News Hungary. Our founders are Ferenc Deli Szilágyi (fs*******@da**********.org) (18), Dániel Gerlei (dg*****@da**********.org) (17) and Filip Cerny (18) (fc****@da**********.org).

VENUE: Engame Academy – Budapest, Maros utca 12, 1122,

DATE & TIME: January 18th, 2025, 15:30-20:00

Registration: Eventbrite

More information: Danube Summit Website

More programs:

UNCHAIN Fintech Festival returns in 2025 in Oradea-Nagyvárad

New exhibition showcases the legacy of Hungary’s iconic painter Munkácsy – details & photos

December 17, 2024

Orbán cabinet: US investors queue up amid improving relations

US companies are open to making investments in Hungary that rival the size of Asian investments currently taking place in the country, building on the projected improvement in bilateral relations, Levente Magyar, a state secretary at the Ministry of Foreign Affairs and Trade, said in Washington after winding up business talks in Florida.

In a statement sent to MTI, he said there could be opportunities for US investments worth many billions of dollars in Hungary.

Magyar said the negotiations showed that improving political relations was a prerequisite for the dynamic growth of economic ties. He said “there are investors waiting in line who are ready to bring very serious capital to Hungary once there is a US administration that will strive to improve relations”.

He noted that his talks on strengthening economic ties built on the fact that Prime Minister Viktor Orbán met with US President-elect Donald Trump in Palm Beach a week earlier. Related article – Orbán: ‘I trust after Donald Trump takes office, we will experience its beneficial effect.’

Among the people with whom Magyar met was the investor Tamás Péterffy.

US Ambassador criticisms

Meanwhile, the US ambassador David Presman to Hungary has strongly criticised the Hungarian government at an event over corruption, its close ties with Russia and China:

latest: How much do Hungarians trust Trump to end the Russia–Ukraine war? – New survey

December 17, 2024

Kazakhstan–Hungary Roundtable breaks new ground in trade and investment

On December 12, 2024, a roundtable titled “Kazakhstan – Hungary: New Trends of Trade and Investment Cooperation” was held in Budapest. The event was organized by the Embassy of Kazakhstan in Hungary in collaboration with Kazakh Invest, supported by HEPA (Hungarian Export Promotion Agency) and the Hungarian Chamber of Commerce and Industry (MKIK).

The roundtable became a logical continuation of the positive momentum following the state visit of the President of the Republic of Kazakhstan, Kassym-Jomart Tokayev, to Hungary on November 19-20, 2024. This visit, which included a meeting between the Head of State and leaders of Hungary’s top companies, was a significant milestone in strengthening Kazakh-Hungarian relations. Related article: PM Orbán meets Kazakh President Tokayev

“Strong economic and cultural ties bind our countries. Today’s event is a key step toward strengthening mutual cooperation, creating new investment projects, and building a strategic partnership”,

said Abzal Saparbekuly, Ambassador of Kazakhstan to Hungary.

During the roundtable, key topics were discussed, including the development of infrastructure and logistics, joint projects in the agro-industrial complex, nuclear energy, digital transformation, and opportunities in education.

Hungarian companies actively cooperating with Kazakhstan, such as MOL Group, UBM Group, L.A.C. Holding, Elitmag, Alfaseed, MVM Group, and I-Cell, were highlighted. These companies are already implementing successful projects in energy, logistics, agriculture, and digital technologies.

“Kazakhstan has become one of our most active and valuable partners in Central Asia. The foundation of our successful cooperation lies in two key factors: mutual respect for the past and a shared aspiration for the future. Kazakhstan is making impressive progress in innovation, sustainable development, and financial technologies, creating a strong basis for our continued partnership”, emphasized Dr. Csaba Kandrács, Deputy Governor of the Hungarian National Bank.

“Collaboration with Kazakhstan opens unique opportunities for Hungarian entrepreneurs. We are proud to contribute to the development of joint projects and the strengthening of economic ties between our countries”, said Gábor Jenei, CEO of HEPA.

“The projects we are implementing jointly with Kazakhstan in logistics and infrastructure not only strengthen trade connections but also contribute to the development of new transport routes between our countries”, noted László Horváth, President of L.A.C. Holding.

Many companies expressed their willingness to expand their presence in Kazakhstan and plan to introduce innovative technologies into joint projects.

“Kazakhstan is a strategic partner in the agro-industrial sector. The country’s opportunities, resources, and government support make Kazakhstan a unique destination for investments”, said Péter Horváth, CEO of UBM Group.

“The agro-industrial sector is not just business but the key to food security. Kazakhstan has already established itself as an agricultural hub in Central Asia, and in the next 5-7 years, we will witness this position strengthening even further”, noted András Sándorfy, Managing Director of Elitmag.

Dávid Békési, Director General of International Relations and Development of the Hungarian University of Agricultural and Life Sciences (MATE), said in his speech that they are open to cooperation with foreign universities in the field of education, as they already have a relationship with a Kazakh university.

Dávid Békési, Director General of International Relations and Development of the Hungarian University of Agricultural and Life Sciences (MATE). Kazakhstan-Hungary Roundtable 2024. Source: Kazakhstan Embassy, Budapest

He stressed that MATE welcomes foreign students who want to study in Europe, and of course, they also welcome students from Kazakhstan to take the knowledge they have gained here back home after graduation.

László Vasa, an expert from the Hungarian Institute of International Affairs, contributed to the discussion by offering an analytical perspective on the prospects for bilateral partnership.

As the Organizers said, this roundtable confirmed the mutual interest of Kazakhstan and Hungary in deepening their partnership, opening new horizons for economic cooperation. More than 70 participants, including government officials, leading companies, and experts from Kazakhstan and Hungary, attended. Mátyás Kohán, a foreign policy observer for the Hungarian weekly Mandiner, moderated the event.

December 17, 2024

Major renovation underway for Budapest’s historic Exchange Palace on Szabadság Square

Gránit Asset Management successfully closed the acquisition of the historical Exchange Palace (Tőzsdepalota in Hungarian) building in the heart of Budapest, Hungary, from private investors, for an undisclosed sum, in an asset deal. With this new venture, the long-vacant building can undergo a transformation and once again become a shining example of Budapest’s architectural heritage.

History of Exchange Palace

Exchange Palace is a monumental Beaux Arts building, completed in 1905, designed by the renowned architect Ignác Alpár, with ca. 50,000sqm total floor area. The building is located on the west side of Freedom Square (Szabadság tér in Hungarian) in the historical centre of District V in Budapest, only two blocks from the Hungarian Parliament, and just the opposite side of the square to the US Embassy. Since its completion it served as home to the Budapest Stock and Commodities Exchange, until World War II. Following the war, it became the headquarters of the Hungarian State Television until 2009. Exchange Palace is a listed historical monument under the protection of the National Heritage Authority.

New chapter for the landmark building

A private equity fund, managed by Gránit Asset Management, and the company owning the Exchange Palace building, represented by Andrea Suriano, senior manager of Futura Investment Management and Futura Funds SICAV- Kappa Fund and Canadian investor Michael D. Tippin, Founder of Tippin Corporation, successfully closed the transaction on December 12. The sale marks the beginning of a new chapter for the landmark building situated in the heart of Budapest, Hungary, on the famous Liberty Square. Gránit intends to redevelop Exchange Palace for a function and purpose which highlights its iconic architectural status, while preserving its historic characteristics.

“The successful sale of Exchange Palace marks an exciting milestone for all parties involved in the process. After overcoming numerous challenges to ensure the successful sale and reuse of Exchange Palace in the best interest of our limited partners and the City of Budapest, we are pleased to welcome Gránit Asset Management as our buyer, whose shared vision, experience in the local real asset markets and confidence in the project have been instrumental in bringing this transaction to fruition and finally, to completion” mentioned Alberto Matta and Andrea Suriano representatives of Cougar Real Estate SA, the majority shareholder of the Exchange Palace.

“Exchange Palace is in good hands with an esteemed Hungarian investor as its rightful new owner. I am confident Gránit will design and develop this truly extraordinary building to its fullest potential. Since 2006, Tippin Corporation, together with Futura Funds (2013), have been proud custodians of this famous Hungarian landmark. While not our original plan, the building became the set of many Hollywood feature films and promoted beautiful Budapest to the world. I’m delighted that our goal for Exchange Palace to be restored and returned to the Hungarian people will be realized,” said Michael D. Tippin.

“We always kept an eye on Exchange Palace waiting for the right time to quickly move and acquire this historic building in this excellent location. I am glad this moment finally came, and we were able to form a truly collaborative environment with the sellers. For Gránit Asset Management, investing in projects that offer long-term value to our investors has always been a primary objective, and this transaction aligns perfectly with that goal. One might think this transaction is a great achievement in light of its past, which is definitely true, however, for us, this is just the first step, and in fact the real journey is yet to come with creating a completely new design for Exchange Palace and executing its full restoration” added Álmos Mikesy, CEO and Chairman of the Board of Gránit Asset Management, representing the buyer. He continued: “The revitalization of this long-vacant building and its transformation into a commercially viable space will have a positive impact on the entire downtown area, boosting not only its architectural appeal but also its economic and tourism prospects.”

Throughout the due diligence and sales process, Gránit was advised by DLA Piper and Sentient. The sellers were represented by CMS Cameron McKenna, CBB law, CBRE and Cushman & Wakefield.

Hungarian policymakers set base rate at the year’s final meeting – update

The Monetary Council of the National Bank of Hungary (NBH) decided to leave the central bank base rate unchanged at 6.50pc at a monthly policy meeting on Tuesday.

The National Bank policy makers left the base rate on hold at the previous two meetings, in October and November, too.

The Council also left the O/N deposit rate at 5.50pc and the O/N collateralised loan rate at 7.50pc. The rates mark the ends of the central bank’s symmetric interest rate corridor.

In a statement released after the meeting, the Council said the expected interest rate paths and future fiscal policies of major economies are still surrounded by uncertainty. Ongoing geopolitical tensions are raising upside risks to inflation through risk aversion towards emerging markets. Looking ahead, a careful and patient approach to monetary policy is warranted. In the Council’s assessment, geopolitical tensions, volatile financial market developments and the risks to the outlook for inflation warrant further pause in cutting interest rates.

“In the current macroeconomic environment, the Bank can make the most effective contribution to the easing of economic agents’ increased precaution and to the restart of economic growth by maintaining price stability and financial market stability” the policy makers said.

“Restrictive monetary policy contributes to the maintenance of financial market stability and the achievement of the inflation target in a sustainable manner by ensuring positive real interest rates,” they added.

The NBH said it considers it crucial that short-term interest rates develop consistently with the level of interest rates determined by the Council in every sub-market and in every period. In line with its earlier practice, the Bank pays special attention to the expected state of the FX swap market at the end of the year. To ensure the effectiveness of monetary policy transmission, the NBH smooths movements in financial markets by using instruments with longer maturities in December, in addition to one-day FX swap tenders announced on a daily basis and weekly discount bill auctions.

At a press conference after the meeting, deputy governor Barnabás Virág said the expected inflation path for 2025 has shifted higher, and a persistent return to the 3pc inflation target has been delayed to 2026. He noted that despite the delay, inflation will remain within the tolerance band for most of 2025.

Citing the projections in the latest quarterly Inflation Report of the NBH, Virag said average annual inflation is set to reach 3.6pc-3.7pc this year. In the previous report, published in September, the NBH had put 2024 average annual inflation at 3.5pc-3.9pc.

The NBH forecasts average annual inflation of 3.3-4.1pc for 2025 in the fresh report, up from 2.7-3.6pc in the previous one, and between 2.5-3.5pc for 2026 and 2027.

The report also says that the Hungarian economy is expected to grow by 0.3-0.7pc in 2024. The NBH forecasts 2.6-3.6pc GDP growth in 2025, 3.5-4.5pc in 2026, and 2.5-3.5pc in 2027.

Virag said in 2024 Hungary’s economy will expand more moderately than expected. The subdued growth is due to factors beyond the scope of monetary policy, like agriculture output, German industrial production and postponed investments. From 2025 onwards, economic growth will be based on increasingly broad foundations and the economy is projected to enter a dynamic phase of growth from the middle of the year again.

Answering questions from journalists, Virag said a vast majority of rate-setters voted to keep the base rate unchanged and one member of the Council voted to cut the base rate by 25bp.

As we wrote yesterday, the future president of Hungary’s National Bank revealed key objective,s and his team, details HERE.

December 17, 2024

Hungary’s business landscape: embracing the cryptocurrency revolution

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Hungary, a country with a rich economic history and strategic position in Central Europe, has been experiencing a fascinating evolution in its business sector as cryptocurrency adoption gains momentum. BTC/USDT trading is becoming increasingly prevalent. From traditional enterprises to innovative startups, Hungarian businesses are increasingly exploring the possibilities offered by digital currencies and blockchain technology.

Traditional Business Environment in Hungary

Hungary’s business environment has traditionally been characterized by a strong manufacturing sector, particularly in automotive and electronics. The country’s strategic location, skilled workforce, and membership in the European Union have made it an attractive destination for foreign investment. Budapest, the capital city, serves as the nation’s economic hub, housing numerous multinational corporations and fostering a growing startup ecosystem.

Small and medium-sized enterprises (SMEs) form the backbone of the Hungarian economy, representing approximately 99% of all businesses. These companies have historically relied on traditional banking systems and the Hungarian Forint (HUF) for their operations. However, the landscape is gradually shifting as digital transformation takes hold.

The Rise of Cryptocurrency in Hungarian Business

The Hungarian cryptocurrency scene has been developing steadily, with businesses showing increasing interest in digital currencies. The country’s approach to cryptocurrency regulation has been relatively balanced, neither overly restrictive nor completely hands-off. This regulatory environment has created a space where businesses can experiment with cryptocurrency integration while maintaining compliance with existing financial laws.

Several Hungarian businesses, particularly in the technology sector, have begun accepting cryptocurrency payments. This trend started with tech-savvy startups but has gradually expanded to include more traditional companies, from restaurants to real estate agencies. Bitcoin remains the most widely accepted cryptocurrency, though other digital currencies are gaining traction.

Regulatory Framework and Business Compliance

The Hungarian government and the Magyar Nemzeti Bank (Hungarian National Bank) have taken a measured approach to cryptocurrency regulation. While cryptocurrencies are not considered legal tender, they are recognized as digital assets. This classification has provided businesses with some clarity regarding their cryptocurrency operations.

Businesses dealing with cryptocurrency must register with the Hungarian authorities and comply with anti-money laundering (AML) regulations. This regulatory framework has helped legitimate businesses operate with confidence while protecting consumers and maintaining market integrity.

Impact on Different Business Sectors

E-commerce and Retail

Hungarian e-commerce businesses have been among the early adopters of cryptocurrency payments. Online retailers appreciate the reduced transaction fees and the ability to attract international customers who prefer paying with digital currencies.

Technology and Software Development

Hungary’s growing technology sector has embraced cryptocurrency not just as a payment method but as a focus for innovation. Several Hungarian tech companies specialize in blockchain development and cryptocurrency-related services, contributing to the country’s digital economy.

Real Estate

The real estate sector has seen interesting developments, with some agencies accepting cryptocurrency payments for property purchases. This trend has attracted international investors and demonstrated how traditional industries can adapt to digital currency innovation.

Cryptocurrency Trading and Exchange Businesses

Hungary has witnessed the emergence of several cryptocurrency exchanges and trading platforms. These businesses serve both local and international clients, providing interfaces between traditional financial systems and the cryptocurrency market. Local exchanges have worked to comply with Hungarian regulations while offering competitive services to their users.

Challenges and Obstacles

Despite the growing acceptance, Hungarian businesses face several challenges in cryptocurrency adoption:

Price volatility remains a significant concern, particularly for smaller businesses that may need more resources to handle rapid value fluctuations. To mitigate this risk, many companies partner with payment processors that offer immediate conversion to Hungarian Forint.

Technical barriers present another challenge, as many traditional businesses need more expertise to implement cryptocurrency payment systems properly. This has led to the rise of local service providers specializing in crypto payment integration and consulting.

Consumer awareness and trust continue to be obstacles, though educational initiatives by business associations and crypto companies are helping to address these issues.

Innovation and Startup Scene

Budapest’s startup ecosystem has become a hub for cryptocurrency and blockchain innovation. Several successful startups focusing on cryptocurrency solutions have emerged from the Hungarian capital, attracting both local and international investment.

These startups range from payment processing services to blockchain development companies, contributing to Hungary’s reputation as an emerging technology center in Central Europe. The government has shown support for this innovation through various startup-friendly policies and initiatives.

Future Prospects and Opportunities

The future of cryptocurrency in Hungarian business appears promising, with several factors supporting continued growth:

Increasing digital literacy and technological adoption among Hungarian consumers create a favorable environment for cryptocurrency-accepting businesses. The country’s strategic position within the EU provides opportunities for businesses to serve as bridges between traditional and digital finance systems.

The ongoing development of regulatory frameworks at both national and EU levels is expected to provide greater clarity for businesses operating in the cryptocurrency space. This could encourage more traditional companies to explore digital currency integration.

Educational Initiatives and Business Support

Various organizations in Hungary have emerged to support businesses in their cryptocurrency journey. These include:

Business associations offering cryptocurrency education and implementation guidance
Technical consultancies specializing in crypto payment integration
Legal firms with expertise in cryptocurrency compliance

These support systems are crucial in helping traditional businesses navigate the complexities of cryptocurrency adoption.

Conclusion

Hungary’s business sector is experiencing a significant transformation as cryptocurrency adoption continues to grow. The combination of a supportive regulatory environment, innovative startup ecosystem, and increasing acceptance among traditional businesses creates a unique landscape where digital currencies and conventional business practices coexist and evolve together.

While challenges remain, the progress made by Hungarian businesses in incorporating cryptocurrency into their operations demonstrates the potential for digital currencies to enhance and transform traditional business models. As the technology matures and regulatory frameworks become more refined, Hungary’s business sector is well-positioned to benefit from the ongoing digital currency revolution.

The country’s balanced approach to cryptocurrency regulation, combined with its strong technical expertise and strategic location, suggests that Hungarian businesses will continue to play an essential role in the evolution of cryptocurrency adoption in Central Europe and beyond.

Disclaimer: the author(s) of the sponsored article(s) are solely responsible for any opinions expressed or offers made. These opinions do not necessarily reflect the official position of Daily News Hungary, and the editorial staff cannot be held responsible for their veracity.

December 17, 2024

400+ forever? Analysts predict a bleak future for the Hungarian forint

Analysts do not expect the euro exchange rate to return to levels below 400 forints in the longer term, and trends suggest that it could reach a level of around 415-420 forints by the end of 2025.

According to Economx, the weak forint has a significant impact on consumer confidence, which is exacerbated by high inflation and expensive food prices. Although inflation is expected to moderate to 3.8% in 2024, households will continue to face declining purchasing power. This trend reflects the steady weakening of the forint in recent years, mainly due to high inflation, low consumer confidence and external economic and political uncertainties. The weak forint is also leading to further increases in the prices of imported goods, putting sustained pressure on household spending.

forint currency economy money — Photo: depositphotos.com

Inflation, which exceeded 20% in 2023, may fall to 3.8% in 2024, but price levels will remain persistently high. The weakening of the forint will further increase the cost of imported goods, including energy and food, which could generate further inflationary pressures. This will slow the recovery of purchasing power and undermine the stability of the forint.

The fall of Premium Hungarian Government Securities

The fall in the yields of Premium Hungarian Government Securities may also have an indirect impact on the forint. Retail investors may shift their money into other assets, such as government bonds issued in foreign currencies or foreign investments. This could reduce demand for the forint, causing further weakening. The central government debt management agency may try to introduce more attractive interest rate conditions, but higher yields on government bonds in the market could still provide strong competition.

The forint’s link to the equity market and the global economic situation

The undervaluation of the Hungarian equity market offers investors new opportunities, but the shift here does not necessarily strengthen the forint. Indeed, the increase in demand for equities is mainly driven by domestic investment, while inflows of foreign capital remain uncertain. The position of OTP, Mol and Richter shares, especially given their exposure to the Russian market, remains vulnerable to international economic influences.

Global economic trends, such as the policies of Donald Trump’s second presidential term, may indirectly influence the forint exchange rate. The US-China tariff war and protectionist US economic policies could put pressure on emerging markets, including Hungary. Problems in the European automotive industry could also affect Hungarian export performance, which could further reduce the stability of the Hungarian forint.

The outlook for the Hungarian forint is weakening in the years ahead, mainly influenced by domestic economic problems, challenges in the international environment and household investment decisions. Persistent exchange rate depreciation and inflationary pressures will further complicate the achievement of economic stability, while global trends and policy decisions will pose new risks. Coordinated action between fiscal and economic policies and the mitigation of external and internal risks would be key to improving the position of the Hungarian forint.

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Featured image: depositphotos.com

December 16, 2024

Future president of Hungary’s National Bank reveals key objectives and his team

The primary goal of Hungary’s National Bank is achieving and maintaining price stability; it is committed to its 3pc inflation target, Finance Minister Mihály Varga said on Monday before parliament’s economy committee as a candidate to lead the NBH.

The independence of the NBH is guaranteed by both the act on the Central Bank and the effective regulatory system of the European Union, he said. At the same time, he added that for sustainable development and a predictable economic environment, the central bank cooperates with the government and domestic and international organizations with mutual respect for their respective mandates.

Varga said that under his leadership the NBH will treat performing classic central bank responsibilities as priorities while activities outside of this will be moderated. At the meeting, Varga introduced his future central bank team members but did not disclose their expected positions. The team will include Péter Benő Banai, the state secretary for the budget, Government Debt Management Agency (AKK) head Zoltán Kurali, and state-owned Hungarian Development Bank (MFB) CEO Levente Sipos-Tompa. The committee supported the appointment of Varga as NBH Governor by a majority vote.

The committee supported the appointment of Varga as NBH Governor by a majority vote. The minister said his commitment to maintaining the 3pc inflation target is a clear and unambiguous message that helps anchor the expectations of consumers, businesses, and financial market participants. Speaking about the prospects of the Hungarian economy, Varga said the economy is on a strong foundation, inflation is within the target range of the central bank, the current account is expected this year to have a 2pc surplus compared to GDP.

The liquidity of households, companies, and the banking system is robust, and the financial system is stable. The basis for economic growth in 2025 is rising consumption, expanding retail lending, growing construction order stock, and new manufacturing capacities coming online. Monetary policy can best contribute to growth by maintaining persistently low inflation and financial market stability, he said. A stable exchange rate and financial markets are priorities for ensuring price stability. Stable and predictable exchange rate is needed for sustainable economic growth.

Varga said that under his leadership the NBH will give a decisive response to risks threatening the financial transmission system, financial stability and sustainable economic development. Varga said he will place strong emphasis on the management discipline of the central bank and ensuring that the central bank operates in a transparent and professional manner. Responding to questions regarding the central bank’s foundations and real estate assets, Varga said that the situation will be reviewed after he takes office in March.

Warning to Primark fans: Beware of scams targeting online shoppers in Hungary

Primark has issued a warning to its customers in Hungary to remain vigilant against fraudulent websites falsely claiming to sell the brand’s products online. The fast fashion retailer, which opened its first Hungarian store in Budapest earlier this year, has confirmed that it does not operate an online store in the country.

Fraudulent websites target Hungarian shoppers

According to Forbes.hu, several fake websites, including www.primark-magyarorszag.com, have been reported for scamming customers by offering non-existent online shopping services. Victims have lost tens of thousands of forints to these schemes, with some individuals reporting losses of up to HUF 40,000–50,000 (EUR 98–122).

Fans of the newcomer franchise have voiced their concerns in online groups, sharing stories of being duped by these fraudulent sites. Among the deceptive domains identified in the past are primarkmagyarorszag.com, primarkhungarywebshop.com, and primarkonlinewebshop.com. All of these have been confirmed as scams.

The retail chain has taken action against these fraudulent websites. According to a company statement sent to Forbes.hu:
“We treat such issues with the utmost priority and take all necessary measures to have these fake websites removed as quickly as possible. We urge our customers to exercise caution when encountering suspicious sites and to refrain from sharing personal information with unknown online sources. Our official website, https://www.primark.com/hu-hu, provides information about our latest collections and in-store availability.”

Hungarian Primark store — Photo: Commons.wikimedia.org By Kolforn

No online shopping, but expansion continues

Despite the increasing popularity of e-commerce, the franchise remains primarily a brick-and-mortar retailer. Its only online shopping service, Click & Collect, is currently being trialled in select UK stores. Customers in Hungary do not have access to online ordering or delivery services, a fact scammers exploit to deceive shoppers.

Primark opened its first Hungarian store on 28 May 2024, at the Arena Mall in Budapest. The store offers the brand’s full range of products, including clothing for men, women, and children, as well as home decor, beauty products, and accessories.

The fast fashion giant continues its expansion in Europe and beyond. With over 400 stores in 16 countries, Primark plans to grow its network to 530 locations by 2026, further solidifying its position as one of Europe’s most popular retailers.

Stay safe

The Irish retail chain advises customers to rely on its official website for accurate information about its products and services. If you come across any suspicious websites claiming to sell Primark products, report them immediately to prevent further scams.

Read also:

December 15, 2024

Hungary’s industrial sector output falls due to struggling battery manufacturing sector

Output of Hungary’s industrial sector edged down 0.2pc in October, a detailed release of data by the Central Statistics Office (KSH) on Friday shows.

The detailed data show output of the automotive industry, Hungary’s biggest manufacturing sector, fell 3.9pc year-on-year in October. The segment accounted for 26pc of manufacturing output during the month.

Output of the computer, electronics and optical equipment segment, accounting for 11.0pc of manufacturing, rose 16.3pc. Output of the electrical equipment segment, which made up 9.4pc of manufacturing output, fell 16.9pc. Output of the food, drinks and tobacco segment, which made up 13pc of manufacturing sector output, climbed 2.7pc.

Adjusted for the number of workdays, headline output was down 3.1pc. In a month-on-month comparison, output was up 2.0pc, on a seasonally- and workday-adjusted basis.

According to Forbes, despite the Hungarian government’s allegations, the output of the Hungarian industry does not keep falling because of the struggling German economy but due to the malaise of the battery industry.

Construction sector output slips 0.5pc in October

Output of Hungary’s construction sector edged down 0.5pc year-on-year in October, data released by the Central Statistics Office (KSH) on Friday show. Output of the buildings segment fell 5.7pc but civil engineering output climbed 7.5pc. In absolute terms, construction sector output reached HUF 679bn in October. The buildings segment accounted for 57pc of the total.

In a month-on-month comparison, construction sector output rose 4.6pc, adjusted for seasonal and workday effects. Order stock was 31.8pc higher at the end of October than twelve months earlier. Buildings segment orders inched down 2.2pc but civil engineering orders jumped 66.0pc.

New orders dropped 44.2pc during the period. New orders in the buildings segment were down 34.5pc and new civil engineering orders fell 53.4pc. For the period January-October, construction sector output edged up 0.7pc from the same period a year earlier.

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Hungarian minister proud that both German and Chinese battery plants are built in Hungary
Pakistani unit of MOL celebrates 25th anniversary

December 14, 2024

French insurance group fined by National Bank of Hungary

The National Bank of Hungary (NBH) on Friday said it fined insurer Groupama Biztosító little over HUF 51m for compliance violations.

The central bank and financial market regulator found regulatory shortcomings related to Groupama Biztosító’s non-life insurance claims settlements, insurance portfolio management, IT security, outsourcing and customer information and complaint management.

The NBH levied a HUF 49.5m supervisory and a HUF 1.6m consumer protection fine and ordered the insurer to correct the shortcomings.

French insurance group fined by National Bank of Hungary — Photo: FB/Groupama

Opus Global profit above HUF 30bn in Q1-Q3

After-tax profit of listed holding company Opus Global edged down 0.7pc year-on-year to HUF 30.4bn in the first three quarters of the year, an earnings report posted on the website of the Budapest Stock Exchange shows. Sales revenue was down at HUF 421bn from HUF 480bn while total operating income slipped 12.1pc to HUF 449bn. Operating costs fell 12.9pc to HUF 417bn, lifting operating profit by a fraction to HUF 31.9bn.

Financial profit of HUF 3.4bn, down by 15.2pc from the base period, also boosted the bottom line. EBITDA increased 4.1pc to HUF 68.4bn. Opus CEO Lélfai Koppány said in a separate statement that the first nine months of the year clearly show that serious efforts are needed to offset the difficult economic situation, but this has been successfully achieved by rationalizing costs. It is important to see that the strategy built on a diversified portfolio is working well at the group level. Opus Global has businesses in energy, tourism, industrial production and the farm and food sector.

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Pakistani unit of MOL celebrates 25th anniversary
Mercedes-Benz to shut down production for one month in its Hungarian base

December 13, 2024

Pakistani unit of MOL celebrates 25th anniversary

Since entering the market, MOL Pakistan has produced more than 400 million barrels of oil equivalent, making a significant contribution to Pakistan’s energy supply, Hungarian oil and gas company MOL said on Thursday in celebration of its Pakistani unit’s 25th anniversary.

MOL Pakistan celebrates anniversary

MOL said that as a fully-owned subsidiary, the unit is a key player in the company’s international portfolio and is responsible for around 7pc of its total hydrocarbon production.

MOL Pakistan currently has interests in four blocks in the country, of which it is present as an operator in the TAL and Margalla Blocks, and has a non-operated interest in the Karak and DG Khan Blocks.

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Featured image: depositphotos.com

December 12, 2024

Mercedes-Benz to shut down production for one month in its Hungarian base

Mercedes-Benz will be shutting down production at its base in Kecskemét (C Hungary) for a winter break from December 18 until January 20, 2025, the local unit of the German car maker said on Thursday.

Mercedes-Benz shuts down for a month

Mercedes-Benz Manufacturing Hungary said that during the break the plant is undergoing significant transformation work in preparation for the production of new models based on the MMA and MB.EA platforms.

The company said Mercedes-Benz is continuously optimizing its production network in order to operate at optimal capacity and to respond to fluctuations in demand using the available flexibility.

The Mercedes-Benz Group achieved stable sales in the third quarter despite model changes, a challenging market environment and tough competition, especially in China, it added.

Mercedes-Benz Manufacturing Hungary had EUR 5.1bn revenue last year. Headcount at the unit averaged 4,477 in 2023.

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Featured image: depositphotos.com

December 12, 2024

Hungarian finance minister: AI opens new era in taxation

Artificial intelligence will usher in a new era in taxation, Finance Minister Mihály Varga said at the Tax Administration European Union Summit (TADEUS) in Budapest on Thursday.

AI opens new era in taxation

Varga told the heads of the tax administrations in the EU that the Hungarian government had established one of the most competitive tax systems in the world over the past decade. The National Tax and Customs Authority (NAV) is at the forefront in terms of digitalisation, he added, pointing to electronic systems for invoicing and monitoring flow of goods, and its preparation of several million tax returns each year.

Since 2010, government measures to crack down on tax evasion have reduced the VAT gap from 22pc close to 4pc, while the tax-to-GDP ratio has fallen from 40pc to 35pc, the third-biggest decline in the EU, Varga said.

He said Hungary was in 7th place in the latest annual ranking by the Tax Foundation of OECD countries’ tax competitiveness.

Varga said the meeting, held in the framework of Hungary’s six-month presidency of the Council of the EU, was a good occasion to summarise results and plans, and exchange information.

Mihály Varga AI opens new era in taxation — Photo: Facebook / Varga Mihály

European Commissioner Wopke Hoekstra welcomed the participants in a video message.

Gerassimos Thomas, the director-general of the European Commission‘s DG for taxation and Customs Union, said the new EC was tasked with boosting the efficiency of taxation and fostering closer cooperation and more exchanges of information between tax authorities.

NAV president Ferenc Vagújhelyi said the two-day forum was an opportunity to share best practices.

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December 12, 2024

AutoWallis issues EUR 20m bond in private placement

Listed car seller AutoWallis on Wednesday announced the issue of a EUR 20m, ten-year bond in a private placement.

AutoWallis’ expansion

AutoWallis will use the proceeds from the issue to fund its expansion abroad and acquisitions. The car seller said it planned to make 2-3 acquisitions a year in the coming years.

AutoWallis is present in 16 countries in Europe and announced its biggest acquisition yet, of Czechia’s MILAN KRAL, in November. The company plans to plough around HUF 80bn into its business by 2028, boosting annual revenue to HUF 750bn and EBITDA to HUF 40n by 2028, double the levels in 2023.

AutoWallis counts Alpine, BYD, Dacia, Isuzu, Farizon, Jaguar, Land Rover, MG, Saab parts, Renault, SsangYong and Opel among the brands in its wholesale portfolio. Brands in the retail portfolio include BMW cars and motorcycles, BYD, Dacia, Isuzu, Jaguar, KIA, Land Rover, Maserati, MINI, Nissan, Opel, Peugeot, Renault, SsangYong, Suzuki and Toyota. It represents the Sixt rent-a-car brand in Hungary and operates its carsharing and fleet management business under the wigo aegis. AutoWallis also owns the vehicle listing sites JoAutok.hu and AUTO-LICIT.HU.

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December 12, 2024

Many tax benefits will no longer apply to third-country nationals in Hungary from 2025

Hungary’s tax laws offer various tax benefits to eligible residents, with significant updates recently affecting third-country nationals. While the family tax allowance was accessible to many, offering substantial support based on the number of dependants, changes coming into effect from 2025 will exclude third-country nationals from several key allowances.

Tax benefits in Hungary

In Hungary, third-country nationals were eligible for certain tax benefits, particularly the family tax allowance, provided they met specific conditions. To qualify, at least 75% of their annual income had to be taxable in Hungary, and they should not have received similar benefits from another country for the same period. The family tax allowance was available for dependants, including children eligible for family support and unborn children during pregnancy.

The allowance amount varied based on the number of dependants, with increased benefits for permanently disabled or severely ill children. This allowance could be claimed either through an employer’s tax advance declaration or during the annual tax return process. However, since August 14, 2023, third-country nationals are no longer eligible for the social contribution tax allowance that employers could previously claim for newly entering the labour market.

Big changes in 2025

The recent amendments to the Hungarian income tax laws, as outlined in the Magyar Közlöny, introduced several significant changes affecting third-country nationals. One of the key updates is related to the family tax allowance, which has been adjusted to provide increased financial support based on the number of dependants. For instance, the allowance for one dependant rose to HUF 133,340 (EUR 325.25), while for two dependants, it increased to HUF 266,660 (EUR 650.47), and for three or more dependants, it reached HUF 440,000 (EUR 1,073.30) per month.

The amendments specified that both EEA citizens and citizens from non-EEA countries bordering Hungary are eligible for these tax benefits. However, it is important to note that third-country nationals are no longer eligible for social contribution tax allowances that were previously available to employers hiring new workers from outside the EU. From 1 January 2025, they will no longer be eligible for the tax credit for starting a life. However, it is still not clear whether third-country nationals would be still eligible for the family tax allowance.

We will keep our readers updated on the topic as we gain more information.

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Featured image: depositphotos.com

December 12, 2024