According to reports, Hungary has not received any EU cohesion funds for 161 days. Of the EUR 21.8 billion allocated for the 2021-2027 budget cycle, only 8.3% has been disbursed so far. Ongoing conflicts between the Hungarian government and EU leadership have stopped further payments, while the country risks losing substantial funds due to unresolved legal and political issues.
Hungary’s 161 days without cohesion funds
Hungary has been excluded from receiving EU cohesion funds since 26 June 2024. The total funding allocated to Hungary under the 2021-2027 EU budget amounts to EUR 21.8 billion, which could exceed HUF 10,000 billion when combined with national co-financing, Index reportsaccording to information from the Ministry of Public Administration and Regional Development. However, political disputes and legal penalties imposed by the EU have restricted Hungary’s access to 56% of this amount, leaving the country with only EUR 12.19 billion available.
Photo: Facebook/Orbán Viktor
To date, Hungary has received EUR 1.8 billion, roughly 8.3% of its allocated funds, placing it ninth among EU countries in terms of received funding. Payments were halted following a 13 June ruling by the European Court of Justice, which fined Hungary EUR 200 million and imposed a daily penalty of EUR 1 million for failing to comply with EU asylum and return policies. This has already cost Hungary over EUR 370 million, with losses potentially exceeding EUR 1 billion by the end of the year unless the rule-of-law conditionality mechanism is resolved.
The prolonged funding freeze has exacerbated Hungary’s economic challenges. According to an interview with opposition Tisza Party leader Péter Magyar published by Bloomberg, unlocking EU funds could alleviate the economic crisis, with proposals for reforms including steering the country towards euro adoption.
The Hungarian forint has plummeted to a two-year low against the British pound, with HUF 501.5 required to purchase a single GBP on Monday morning. This is just shy of the all-time record of HUF 502.9, illustrating the domestic currency’s sustained weakness. The euro-forint exchange rate has also breached new lows, with the common European currency trading above HUF 415, marking its weakest performance in two years.
Weakening: Regional and global factors in play
The Hungarian forint’s poor performance extends beyond major currencies, as it also hit unprecedented lows against the Polish złoty and the Czech koruna, Világgazdaság reports. Analysts point to several key factors driving the depreciation. Chief among them is Moody’s recent downgrade of Hungary’s credit rating outlook from stable to negative. This shift, announced late last Friday, has shaken investor confidence, prompting a reassessment of regional holdings.
The downgrade reflects concerns over Hungary’s governance and its potential loss of EU funds, exacerbating fears about the country’s fiscal stability. Simultaneously, global market trends have added to the pressure, with the US dollar gaining strength. The dollar index (DXY), which measures the greenback against a basket of currencies, climbed 0.47%, signalling broad-based demand for safer assets.
Policy dilemma: Balancing rates and stability
Economic experts like Viktor Zsiday, portfolio manager at Citadella Fund, highlight deeper systemic issues. In Portfolio’s article, Zsiday argues that Hungary’s current interest rate policies are insufficient to stabilise the currency. Despite recent rate cuts aimed at stimulating growth, these adjustments have inadvertently fueled the Hungarian forint’s slide.
Zsiday outlines two potential paths forward: continued rate cuts, which risk further depreciation and heightened inflation, or raising rates to attract investors and stabilise the forint. However, both options come with significant economic trade-offs. He also underscores that the root cause of investor apprehension lies in Hungary’s economic policies and political risks, which only the government can address.
Hungarian forint: creator of challenging environments
The weak forint creates a challenging environment for businesses and consumers alike. With Hungary heavily reliant on imports, the currency’s depreciation inflates the cost of goods, fueling domestic inflation. This, coupled with high interest rates, creates a precarious economic environment. Hungary’s monetary policymakers face mounting pressure to restore investor confidence while balancing domestic economic needs. Yet without significant reforms or shifts in fiscal policy, stabilising the forint may remain a distant goal.
At 5 PM, the EUR/HUF exchange rate was above the 415 level with one euro costing HUF 415.07. The GBP/HUF rate had not improved too much by 5 PM, with one pound costing HUF 500.62 at the time of writing this piece. As for the US dollar, one greenback cost HUF 396.73 at 5 PM on Monday.
The Hungarian Banking Association expressed concern about the government measures increasing lenders’ burdens by an additional tens of billions of forints, announced partly without prior consultation, on November 28.
The increase in the windfall profit tax, which was to be phased out based on the government’s previous commitment, and the extension of the retail credit rate freeze will harm Hungary’s international competitiveness, weaken the strategic partnership between the government and the bank sector, and undermine market confidence, the associationsaid on Friday.
The retail credit rate freeze is now being extended for the sixth time, which goes against the requirements of responsible consumer behaviour as it rewards the consumers who, despite a series of early warnings, decided to take the risks of variable-rate loans and did not switch to fixed-rate mortgage loans, they said. When market rates increased and those consumer risks turned to reality, the government expected the banks to take the consequences while many of those consumers would have been able to afford the higher repayments.
They also noted that the government-initiated voluntary 5pc interest rate cap programme for retail mortgages, due to start in April 2025, is viable and can have a meaningful impact under the conditions set by the banks.
“The Hungarian Banking Association remains committed to a stable and predictable economic environment, an essential condition for international competitiveness, and is ready to cooperate with the government in developing meaningful and sustainable solutions to strengthen this,” the association said.
Szeged is just 2.5 hours away from Budapest by train and 2 hours by car if you travel on motorway M5. The southern Hungarian town is called the “City of Sunshine” since the number of sunny days is the highest there in Hungary. In December, you should not miss the city’s astonishing Christmas fair. Szeged Christmas fair is cheaper than the ones in Budapest and offers multiple attractions, including the Szeged Eye, and the same traditional Hungarian foods. Only the mulled wine is more expensive than in the capital.
Everything is cheaper at the Szeged Christmas fair except for mulled wine
Telex compared the prices in Budapest and Szeged with the help of a journalist working for Szegeder, a local media outlet. According to László Botka, the mayor of Szeged, they turned on the lights of the Christmas fair on Friday. Furthermore, light trains started to carry passengers in the city. According to Telex, many people visited the fair on the first day. They were curious about the new attractions and hoped to taste traditional Hungarian drinks and foods like lángos, chimney cake and mulled wine.
Photo: Szegedi Karácsonyi Hetek/FB
Photo: Szegedi Karácsonyi Hetek/FB
Photo: Szegedi Karácsonyi Hetek/FB
Photo: Szegedi Karácsonyi Hetek/FB
Telex wrote that only mulled wine is more expensive in the town’s Christmas fair than in Budapest. One dl costs EUR 1.5, several cents more than Budapest’s two main fairs, the Advent Bazilika (chosen as Europe’s all-time best) and the Vörösmarty Square.
Meanwhile, a plain lángos costs less than EUR 3, and if you choose to eat it traditionally, with sour cream and cheese, you still only have to pay EUR 5. A pancake costs EUR 1.25, eight mini doughnuts are EUR 4.5, and 12 is EUR 5. Extra lyophilised raspberries cost EUR 1.5.
Photo: Szegedi Karácsonyi Hetek/FB
If in Szeged, you should try the Szeged Eye
Strudel costs only EUR 2.5, while, in Budapest, you have to pay almost EUR 4 for it. Roasted chestnuts are also cheaper in Szeged, the price is almost 50% lower than in Budapest. The same goes for the chimney cake (less than EUR 4).
Photo: Szegedi Karácsonyi Hetek/FB
Except for the mulled wine, all drinks at the Szeged Christmas fair are cheaper than in Budapest. For example, tea costs half the price in Budapest, and the same goes for soft drinks and mineral water. Pálinka is also discounted compared to Budapest, but it is better to buy in larger quantities (4cl instead of 2cl).
Photo: FB/László Botka
Photo: FB/László Botka
Photo: FB/László Botka
The Szeged Eye is a popular destination for all visitors. Ticket prices have increased by EUR 1.25. The adult ticket costs EUR 7.5, while the kids have to pay EUR 5.5.
Photo: Szegedi Karácsonyi Hetek/FB
Photo: Szegedi Karácsonyi Hetek/FB
Photo: Szegedi Karácsonyi Hetek/FB
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The Hungarian government has issued a draft regulation for public consultation, proposing significant increases in various administrative fees. The stated aim is to align public revenues with the 2025 fiscal framework while introducing greater transparency in service fees.
According to Portfolio, these changes would have far-reaching implications for sectors such as healthcare, justice, education, intellectual property, and customs. Although rising costs are cited as the reason for the proposal, the scale and impact of these administrative fee increases are expected to vary.
Photo: depositphotos.com
The administrative fee changes
In the healthcare sector, administrative fees for certain reimbursed services will increase. A notable example is the cost of obtaining a medical opinion for public employment or work in the public interest, which would be standardised at HUF 6,000 (EUR 14). While this is not a dramatic increase compared to current rates, the fixed fee is justified by rising operating costs. This adjustment is intended to help healthcare providers cope with inflation and other economic pressures.
Fees related to intellectual property are also under review, with significant increases anticipated. For instance, the cost of patenting biological material will rise from HUF 150,000 (EUR 365) to HUF 202,500 (EUR 493), an increase of 35%. This adjustment is designed to cover administrative costs while simultaneously incentivising improvements in the quality of services.
Licences for orphan works—intellectual creations whose rights holders cannot be found—will also become more expensive. For commercial use, the fee will rise to HUF 124,800 (EUR 304), while non-profit use will cost HUF 40,500 (EUR 98). This tiered pricing system aims to ensure a fairer distribution of costs between commercial and non-commercial users.
Border crossing fees are set to increase as well. For example, the cost of a temporary border crossing permit will double from HUF 3,000 (EUR 7) to HUF 6,000 (EUR 14). Similarly, training fees for customs agents and consultants will rise from HUF 8,000 (EUR 19) to HUF 11,000 (EUR 26). These increases are expected to affect companies involved in foreign trade, as they could raise administrative costs for operators in this sector.
The education sector will not be spared: the licence fee for new vocational textbooks will increase by 20%, from HUF 6,750 (EUR 16) to HUF 8,100 (EUR 19). According to the draft’s explanatory notes, this increase reflects ongoing digitisation efforts and the expansion of curriculum content. While these changes aim to improve the quality and accessibility of educational resources, they could pose financial challenges for schools and training institutions.
Implementation timeline and public feedback
The proposed changes regarding the administrative fee would come into force 31 days after publication. The draft regulation is currently open to public consultation, with stakeholders invited to submit comments to the Department of Administration and Territorial Development by 2nd December. This consultation period provides an opportunity for individuals and organisations to raise concerns about the scale of these fee increases or suggest refinements to the draft regulation.
The overarching objective of these administrative fee increases is to boost public revenues, but their impact on different social groups and sectors remains uncertain. While the rationale—reflecting inflation and covering increased administrative costs—may be justified, the measures could impose additional financial burdens on those affected. The outcomes of the public consultation and the final regulation will determine whether these changes strike the right balance between improving public services and ensuring economic fairness.
The government will extend a rate freeze on retail credit for another six months, Gergely Gulyás, the head of the Prime Minister’s Office, said at a weekly press briefing on Thursday.
Gulyás said phasing out the measure was not yet justified in the current interest rate environment.
Economy minister: Europe needs competitiveness turnaround
Europe needs a “competitiveness turnaround”, National Economy Minister Márton Nagy said ahead of a meeting of European Union ministers in charge of competitiveness in Brussels on Thursday.
In a statement issued by his ministry, Nagy said the United States and China were ploughing large fiscal resources into the digital and green transitions, and the EU needed to catch up if it didn’t want the competitiveness gap to widen further.
At the Competitiveness Council on Thursday, ministers responsible for the internal market and industry will discuss the future of European competitiveness and better regulation to reduce bureaucracy. The European automotive and battery industries and the biotechnology sector are also topics on the agenda.
A recent analysis reveals that Hungary has seen a significant decline in its citizens’ relative income standings within the European Union over the past few years. Following the pandemic and the onset of the Russian-Ukrainian war, only a small segment of Hungary’s population—roughly 15%—has improved its position in EU income rankings. This is a sharp contrast to the situation in the late 2010s when Hungary experienced a period of economic growth, benefiting a broader portion of the population.
When ranking EU residents by income, Hungary’s citizens as a whole have slipped backwards between 2020 and 2023, G7 reports. Most notably, this trend is evident across both nominal income (in euros) and purchasing power parity, which adjusts for cost-of-living differences between countries. The government’s attempts to regulate prices have had little impact on reversing this decline.
Source: Pixabay
For instance, Hungarians earning at the median level in 2020 ranked in the 13th percentile across the EU, meaning they earned more than 13% of Europeans. By 2023, this had dropped to the 11th percentile. The top earners in Hungary, however, have seen some improvement, with those in the 90th income percentile advancing from ranking 28% of Europeans in 2020 to 29% in 2023.
While the wealthiest 3% of Hungarians have made notable gains, closing the income gap with their European peers,
the majority—around 85%—have fallen further behind.
In fact, the G7 article suggests that 8.5 out of 10 Hungarians are now in a worse relative income position compared to the EU average, contradicting the narrative of economic progress for all.
The gap between high earners and low earners has remained stark. The government’s policy of flat taxes and generalised subsidies, such as energy price reductions, disproportionately benefit the wealthier segments of society. While high-income individuals have seen substantial pay increases that helped them climb the EU income ladder, the poor have faced the brunt of skyrocketing inflation, exacerbating income inequality.
Ultimately, the data paints a picture of growing economic disparity in Hungary, where only the top earners are benefiting from EU-wide income improvements, while the rest of the population struggles to keep pace. This growing income divide underscores the lack of effective policies aimed at reducing inequality in Hungary.
The Hungarian banking system remains “stable” and “resilient to shocks”, while bolstered by “outstandingly high profitability”, Zita Fellner, a senior economist at the National Bank of Hungary (NBH), said presenting a report on Wednesday.
Fellner pointed to the ample liquidity, adequate capitalisation and the high quality of loan portfolios of local lenders, highlighting the key messages in the central bank’s latest Financial Stability Report.
She said the local banking sector would meet regulatory requirements on liquidity and capital adequacy even in the event of a severe shock. Lending capacity of the banking system is “abundant” and no credit supply constraints can be identified, she added.
Local lenders’ earnings reached a historical high of HUF 934bn in the first half of 2024, partly due to volatile and one-off items, she said. NPL ratios in the corporate and retail segments reached historical lows of 3.8pc and 2.3pc, respectively, she added.
She acknowledged that the quality of the corporate loan portfolio could be at risk from the depreciation in the commercial real estate market through bank collateral values, but said those risks were mitigated by the fact that the market may have reached the bottom of the cycle.
Earlier identified risks have abated, she said, noting low jobless rates, low levels of credit among companies under liquidation and the extension of the deadline for borrowers of prenatal baby support credit to fulfil their pledges to have children.
Corporate lending growth continued to slow in H1, to 3.7pc for the whole portfolio and to 0.7pc for the SME segment, mainly due to weak demand, while supply-side conditions were a stimulus to growth, Fellner said. She put the annual growth rate of the corporate loan portfolio around 3pc, in light of the tighter supply of subsidised loan schemes, the lack of an upturn in investment loan demand and the high portfolio of liquid assets.
The retail credit market picked up in H1, supported by stable employment and real wage growth, she said. Home loan volume rose by a factor of 2.5, and the total retail lending portfolio could climb by 9pc for the full year, supported by improving macroeconomic fundamentals, restructured family subsidies and lower long-term yields, she added.
She estimated that around HUF 300bn could be rechanneled from voluntary pension funds to home purchases and renovation under a temporary government measure. Interest on and redemptions of retail government securities is expected to be over HUF 3,000bn in 2025 and around one-fifth of that could be used for big investments, she added.
On Wednesday afternoon, the Hungarian forint hit a new low, with the euro exchange rate surpassing 413 EUR/HUF. The currency’s value plummeted to 413.4 before settling slightly at 412.9 by 5 PM. This marks a new milestone, breaking the two-year low set earlier in the week when one euro cost HUF 412.5.
The decline comes amid a drop in European stock markets triggered by a further dip in Germany’s consumer confidence index, Portfolio reports. While the U.S. dollar weakened, economic challenges in Europe heavily impacted the forint, pushing it to this unprecedented level.
The Hungarian currency also showed significant losses against the Polish zloty, reflecting Hungary’s widening economic gap within the region.
Hungary is heading to the European Court of Justice (ECJ) on last Tuesday over a controversial child protection law that has faced criticism since its introduction in 2021. Critics, including the European Commission and numerous EU member states, have labelled it anti-LGBTQ+, claiming it discriminates under the pretext of regulating sexual education, adoption, and media content.
According to Portfolio, the European Commission initiated infringement proceedings against Hungary last year, arguing that the law conflicts with EU principles of equality and fundamental rights. The case has since escalated, with 16 other member states joining the legal challenge. Such a level of involvement is unprecedented in a case of this kind, highlighting the profound impact it has across the bloc.
The ECJ’s ruling could do more than determine the future of this law—it could redefine Hungary’s relationship with the EU and set a precedent for how the Union addresses member states accused of deviating from shared democratic values.
Photo: Daily News Hungary
What could this case mean for Hungary?
The court’s Advocate General is expected to deliver a preliminary opinion in the coming months, but the final ruling will likely take longer. Whatever the outcome, it will almost certainly influence the EU’s broader stance on Hungary. For years, the European Council has hesitated to invoke Article 7—a process that could strip Hungary of its voting rights in the EU—but that caution may diminish if the court delivers a strongly unfavourable ruling against the Hungarian government.
As Portfolio reported, Germany has already called for renewed discussions on Article 7, with the issue returning to the agenda during this week’s Council meeting. Although no concrete actions are expected immediately, the mounting pressure on Hungary is evident.
This legal battle is not just about political ideology—it has significant financial implications. Hungary has already lost access to €600 million in EU cohesion funds, with the EU citing breaches of its Charter of Fundamental Rights. Depending on the outcome, this case could either exacerbate those financial losses or pave the way for the restoration of much-needed funds. Either way, the stakes are high, particularly as Hungary’s economy continues to face difficulties.
Photo: depositphotos.com
A really bad timing
This case comes during a period of heightened tensions between the EU and Hungary’s government. While Brussels accuses Hungary of undermining democracy and fundamental freedoms, the Hungarian government has doubled down on its narrative, with pro-government think tanks such as the Nézőpont Institute deflecting blame onto the EU itself. The result is a fraught political tug-of-war, making consensus increasingly elusive.
Beyond the political and legal wrangling, a more fundamental question looms: what happens when a member state openly defies the Union’s core principles?
What comes next for Hungary and the case?
The ECJ’s decision could have far-reaching implications for the EU’s ability to enforce its values, not just with Hungary but with any member state that challenges its rules. This moment is critical for Hungary, which is facing increasing isolation within the Union.
In the coming months, the debate is set to intensify. Whether the outcome promotes unity or deepens divisions remains uncertain, but one thing is clear: the EU’s identity and future direction are as much on trial as Hungary’s law.
The Hungarian forint has depreciated significantly in recent years, especially following Russia’s invasion of Ukraine. Compared to other Eastern European currencies, the forint experienced a sharper decline due to factors such as long-term central bank policies and Hungary’s geopolitical challenges. Although recent measures by the Hungarian National Bank (MNB) have helped stabilise the currency, its value remains weaker compared to its past levels, raising questions about the effectiveness of monetary strategies.
Post-invasion decline
According to an experts’ report on Telex, in the wake of the Russian invasion of Ukraine, the forint suffered a dramatic loss in value. At the start of 2022, one US dollar was worth HUF 324, but by 31 December 2022, it had risen to HUF 373. The currency hit its lowest point in October 2022, exceeding HUF 400 per dollar. While the forint has since regained some strength, it continues to underperform when viewed over a broader timeframe.
Comparison with regional currencies
When compared to other regional currencies like the Czech koruna, Polish złoty, and Romanian leu, the forint’s depreciation stands out. While all these currencies weakened during the war, none experienced declines as severe as the Hungarian forint.
Central bank policies and real interest rates
One of the primary factors behind the Hungarian currency’s weakness is the Hungarian National Bank’s monetary policy. For years, the MNB maintained low nominal interest rates, especially when adjusted for inflation (real interest rates). Between 2017 and mid-2023, Hungary’s real interest rates were often below those in the United States, reducing the appeal of Hungarian investments for foreign institutional investors. This dampened demand for the forint, contributing to its decline.
Impacts and risks
A weaker forint has both advantages and disadvantages. On the positive side, it can boost Hungarian exports by making them cheaper on global markets, potentially driving job creation. However, the prolonged depreciation also fuels inflation, which has been among the highest in the European Union.
External factors further exacerbated the forint’s decline in 2022, such as delays in EU funding and concerns over Hungary’s close ties to Russia, which unsettled foreign investors.
Recovery and stabilisation
By late 2022, the MNB shifted to a more aggressive policy, raising interest rates significantly. This resulted in higher real interest rates, which eventually surpassed those in the US by the end of 2023. The stabilisation of the forint supports the view that past monetary policy decisions were a key driver of its earlier depreciation.
Conclusion
While the Hungarian currency has shown signs of recovery, its long-term depreciation reflects a mix of domestic policy decisions and external economic challenges. For the currency to achieve sustained stability, a balanced approach to monetary policy and enhanced investor confidence are crucial.
The minimum wage will grow by 9 percent, 13 percent and 14 percent in the next three years, and the minimum wage for skilled workers will increase by 7 percent next year, so wage growth will be dynamic alongside the projected 3-4 percent inflation, Sándor Czomba, the state secretary for employment policy, said on public Kossuth Rádió on Sunday morning.
Real wage growth also expected increasing consumption
Real wages are also expected to increase, he added, and that will be reflected in consumption and households. The fact that the three-year wage agreement was concluded in the current uncertain global economic conditions “has a very important message” for the market, the economic, employees and households, he added.
Czomba said employers initially offered an average ten percent increase of the minimum wage, while employees wanted a twelve percent raise on average. With both paths, it would have been possible for the minimum wage to reach 50 percent of the regular gross average wage by 2027, but the wage dynamics can only be maintained and increased with the higher figure, he said.
Photo: depositphotos.com
Minimum wage can be around EUR 1,000 by 2028
The aim of achieving a minimum wage of “around 400,000 forints [EUR 970]” by 2028 “seems completely rational” with the second path, Czomba said, as this amount will be achievable from 2027 to 2028 with an eight percent minimum wage increase. For this to be feasible, employees wanted some kind of guarantee and assistance from the government.
Therefore, employers with employees on a minimum wage will have to pay the increased social contribution tax “on a sliding scale”, that is to say they will have to pay the tax based on the previous year’s minimum wage, not on the rate applicable for that year, the state secretary said.
There are currently around 211,000 people earning the minimum wage in Hungary, and about 330,000-340,000 workers are paid the minimum wage for skilled labourers, Czomba said. Overall, the minimum wage increase directly affects around one million people from the labour market of 4.7 million employees, he said.
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The government will implement changes in the operation of law courts to increase their efficiency and “significantly” raise the salaries of staff members under a recent agreement with the National Judicial Office, the Judicial Council, and the Kúria, Hungary’s supreme court, the justice minister said on Friday.
Bence Tuzson told a press conference that the changes were aimed at helping Hungarians to access “fair and efficient” court services and aiding a faster ruling process. The minister said the agreement between the government and judicial bodies had been preceded by substantive talks.
Concerning the wage rise, Tuzson said the judicial system would only work well if judges and staff, including secretaries and assistants, were “properly” paid. He said wages will be raised in three steps in January 2025, 2026 and 2027. The average judge will benefit from a rise of 48 percent, secretaries and assistants will receive 82 percent more, and other staff members 100 percent, he said. Judges therefore will make a monthly 2,250,000 forints (EUR 5,470), secretaries and assistants 1,125,000 forints and lower-level clerks 850,000 forints, he said.
Structural changes to the court system will make procedures faster and facilitate an even distribution of cases, the minister said, adding that online procedures would be promoted with “clients and lawyers attending hearings online”.
University students will also be provided an opportunity to follow hearings online and get acquainted with court procedures
, he added. Tuzson said several components of the plan would facilitate simpler bureaucratic procedures for companies.
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Budapest streets and squares were the most expensive in Hungary concerning property prices for decades. In 2023, the Aranyhíd promenade in Balatonfüred, a popular Hungarian bathing town near Lake Balaton obtained 1st place with HUF 2.64 million/sqm (EUR 6,410). In 2024, Budapest reclaimed the first position with HUF 3.775 million (EUR 8,990), a significant rise. Here is the most expensive street in Hungary this year.
According to origo.hu, the second place went to Budapest’s Kossuth Square, where the Hungarian Parliament is located, with HUF 2.54 million/sqm in 2023. Ruthén Street won third place in Budapest’s 2nd district with HUF 2.37 million/sqm. In the top 10 of 2023 were sqm prices between HUF 1.85 and 2.22 million (EUR 4,490-5,400).
The Kossuth Square is behind the Hungarian Parliament. Photo: depositphotos.com
The cheapest street in Hungary concerning property was Templom (Church) Street in 2023 in Kiskunlacháza, where you can buy a sqm for only HUF 23,000 (EUR 56).
According to the statistics, the most expensive areas in Budapest were the Türbe Square (2nd district), the squares near the Elizabeth Bridge, the Széchenyi wharf, the 15 March Square and some streets in the 2nd district. The cheapest streets and squares were in the 17th, 20th, and 18th districts in the capital last year.
The Tomb of Gül Baba. Check out our article about it HERE. Source: gulbabaalapitvany.hu
Outside Budapest, Lake Balaton and Zebegény (Danube Bend) were the most expensive. You had to pay between EUR 5,340 and 6,800/sqm for property in the most expensive streets and squares at the “Hungarian Sea”.
In 2024, Budapest reclaimed its first position concerning the most expensive property prices with HUF 3.775 million (EUR 8,990) in the 2nd district’s Türbe Square. The top 10 consisted only of Budapest streets and squares with prices between EUR 7,530 and 8,990.
A sqm in the cheapest streets in Hungary costs only HUF 16-19 thousand (EUR 40-45). According to the statistics, the price difference between the cheapest and most expensive streets in Hungary was 115-fold in 2023. That increased to 236-fold in 2024.
More bad news from Hungary’s economy: government deficit rises
Hungary’s cash flow-based general government deficit reached HUF 3,050.5bn at the end of October, the Finance Ministry confirmed in a detailed release of data on Friday. The central budget had a deficit of HUF 3,048.5bn at the end of the month and the social security funds were HUF 199.0bn in the red, but separate state funds were HUF 197.0bn in the black. Alone in October, the general government deficit came to HUF 427.0bn.
“The impact of unfavourable circumstances in the global economy can be felt in Hungary’s economic performance,” the ministry said. “After a temporary slowdown, Hungary’s economy will be on a sustained growth path and could be at the forefront in the European Union growth ranking in 2025, providing the foundation for a strengthening fiscal balance,” it added. Interest expenditures came to HUF 3,198.5bn in January-October, climbing by HUF 899.6bn from the base period, the ministry said, noting that the fall in forint interest rates started in 2023 was showing up in cash flow-based interest expenditures with a delay.
Interest expenditures will show a “clear decline” from 2025, it added. Budget spending on EU-supported projects reached HUF 1,299.6bn in January-October, while transfers from Brussels reached just HUF 999.8bn. The ministry reaffirmed the government’s commitment to improving balance indicators and bringing the general government deficit down to 4.5pc in 2024, 3.7pc in 2025 and to under 3pc in 2026.
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The average gross wage in Hungary rose 12.5pc year-on-year to HUF 627,400 in September, data released by the Central Statistics Office (KSH) on Friday show. However, the median wage is still very low compared to other Central European countries since it barely reaches EUR 873.
Net wages climbed at the same pace to HUF 417,200.
Real wages rose 9.2pc, calculating with September CPI of 3.0pc.
The gross median wage increased 15.5pc to HUF 519,500. That is HUF 359,100 net, which is currently EUR 873. Half of the Hungarians received less money than that after working for a month.
Hungary’s statutory monthly minimum wage was raised by 15pc to HUF 266,800 for unskilled labourers and by 10pc to HUF 326,000 for skilled workers from December 1.
Excluding Hungarians working full time in fostered work programmes — who earned on average gross HUF 132,300 in September — the average gross monthly wage was HUF 637,300.
The average gross wage in the business sector, which includes state-owned companies, rose 11.9pc to HUF 630,700. The average gross wage in the public sector climbed 14.1pc to HUF 612,100. In the non-profit sector, the average gross wage increased 14.0pc to HUF 638,600.
For the period January-September, gross wages averaged HUF 633,500 and net wages came to HUF 421,300, both up 13.7pc from the same period a year earlier.
Hungarian economy struggling
Investment volume in Hungary declined 15.4pc year-on-year in the third quarter, data released by the Central Statistics Office (KSH) on Friday show.
Adjusted for seasonal effects, investment volume fell 14.9pc.
Hungary’s economy is struggling. Economy development minister Márton Nagy believes the reason is the struggling of the German economy. Therefore, we should “forget about the Germans” and the economic growth in Hungary in 2025 will be above 3%. Photo: MTI
Investment volume in the manufacturing, logistics and education sectors contributed the most to the headline decline, KSH said. The fall was mitigated by rising investment volume in the real estate and energy sectors, it added.
In a quarter-on-quarter comparison, investment volume edged down a seasonally-adjusted 2.5pc.
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Forint in free fall, historic lows against the American dollar, GBP, CHF, PLN! – details in THISarticle
The considerable strengthening course of the American dollar following the victory of Donald Trump makes it hard for the emerging currencies to keep up. Since the Eurozone PMI hit a 10-month low, the euro started to fall against the dollar, worsening the above-mentioned situation. However, the forint performs badly not only against the dollar. The Hungarian currency reached a historic low against the Swiss franc (CHF), the pound sterling (GBP), and even the Polish zloty (PLN).
According to portfolio.hu, the last time the euro was this weak was in November 2022. In October 2022, the forint reached an all-time historic low against the American dollar and the euro. However, thanks to the intervention of the Hungarian National Bank increasing the base rate sky-high, the Hungarian forint’s free fall could be stopped.
Now, the forint exceeds new historic lows against the USD, GBP, CHF and PLN daily.
Photo: FB/MNB
Historic lows against the American dollar, GBP, CHF, PLN
Currently, the Hungarian currency stands at 395.5 against the American dollar. The last time the forint’s depreciation reached such a shocking level against the American currency was in December 2022. The all-time historic low against the dollar was 435.5 on 8 October 2022.
Prospects are grimmer in the case of the Swiss franc. Following the conversion of CHF loans to forint, Hungarians do not follow the exchange rate changes of the CHF. Data show that the last time the Swiss franc was so strong against the forint was in September 2022 with HUF 437/1 CHF. Now, the exchange rate is at an all-time historic low above HUF 444/1 CHF.
Photo: facebook.com/jegybank
The forint reached an all-time low against the pound sterling in November as well. Currently, the exchange rate is above 495.5. On 10 December 2022, it stood at 487.1. However, the current all-time historic low is the consequence of a constant and gradual weakening, while the 2022 low was just a swing since on 17 December 2022, the exchange rate was “only” 464.
Source: Google.
Concerning the regional currencies, the Polish zloty also performs better against the forint and stands at a historic high with HUF 94.7/PLN 1 at the moment, even though the strengthening of the dollar is bad news for all emerging currencies like the Polish zloty.
György Matolcsy, the governor of the Hungarian National Bank. Photo: FB/MNB
Forint eases on interbank forex market
The forint traded at 411.37 to the euro around 10:00 in the morning on Friday, edging down from 411.06 late Thursday. The forint weakened to 394.00 from 391.96 against the dollar. It slipped to 444.13 from 442.35 to the Swiss franc, the MTI wrote.
BUX rises in early trade
The Budapest Stock Exchange’s main BUX index was up 0.29pc at 79,460.46 about 15 minutes after the opening bell on Friday. OTP Bank edged up 0.09pc to HUF 21,620 and oil and gas company MOL rose 0.37pc to HUF 2,686. Pharma share Richter climbed 0.37pc to HUF 10,850 and Magyar Telekom advanced 0.98pc to HUF 1,240. The BUX finished the session on Thursday up 0.17pc. Turnover reached HUF 11.3bn, MTI added.
At just 11 months old, Dusán’s family received the devastating news: their young son had been diagnosed with Duchenne muscular dystrophy (DMD), a rare and incurable genetic disorder that leads to progressive muscle weakness and damage. After weeks of uncertainty, the diagnosis came as a shock. DMD, which primarily affects boys, is caused by a mutation in the dystrophin gene, responsible for the stability of muscle cells. The disease gradually weakens the muscles, and while there is currently no cure, research is underway for potential treatments.
Dusán’s birth on 7 September 2020, coincided with World Duchenne Day, and his name almost mirrors the pronunciation of the disease, symbolising a connection to his ongoing battle, ICT Global writes.
A ray of hope: Seeking experimental treatment for DMD
Dusán. Photo: Dusán Világáért Foundation
Over the past three years, Dusán’s family has explored every possible option to give him the best chance at life. Despite visiting over 20 clinics and pharmaceutical companies worldwide, many of which offered no answers, hope emerged from an unexpected place: an experimental therapy in Europe. The family now faces the difficult decision to uproot their lives and move to Belgium, where Dusán can participate in a pioneering treatment, which is still in its early stages.
The experimental treatment, though promising, is not risk-free.
“It is risky to undertake an experimental treatment as we are about to begin a therapy whose long-term effects are still not fully known. However, we are doing this not only for Dusán but also for the entire DMD community, to help advance the understanding and treatment of this disease,”
said Zalán, Dusán’s father.
Financial struggle: Help needed for treatment costs
The experimental treatment is expensive, and the family is seeking financial support to cover the costs of moving abroad and sustaining their lives there. With the necessity of leaving their jobs and daily life behind, the family faces significant financial burdens. As part of their support, businesses are encouraged to contribute resources, which can also be reflected in their ESG (Environmental, Social, and Governance) reports.
“We have accepted the terms of the contract, and Dusán has already been participating in preliminary research and trials for over a year. The treatment is a costly alternative to gene therapy, which very few people have access to. We need EUR 120,000 to cover the costs at the start, ensuring we can provide everything Dusán needs to continue his treatment and stay abroad,”
said Zalán.
A life-changing opportunity
Photo: Dusán Világáért Foundation
Dusán’s participation in the experimental therapy could begin around Christmas, with the potential to significantly improve his quality of life. “If successful, this treatment could not only improve Dusán’s condition but also buy us time to develop second-generation drugs. This would offer hope for many children and families affected by this disease,” Zalán added.
Dusán Világáért Foundation: Supporting the mission
To further support Dusán’s fight, the Dusán Világáért Foundation has been established. Its mission is to provide Dusán with the best chance at healing and living a full life by financing the treatments and tools that will enhance his quality of life.
Support the Cause:
Individuals and businesses can contribute to Dusán’s treatment fund, which is critical to covering the next few years of international medical care. The foundation’s target amount is HUF 50 million (EUR 120,000), which will help cover the costs of Dusán’s overseas treatments.
If you would like to help, donations can be made to:
The minimum wage will rise by 9% in 2025, by 13% in 2026 and by 14% in 2027, Sándor Czomba, the state secretary for employment policy, said at an event on Thursday.
Czomba noted that the minimum wage would rise by 12% on average in the next three years. The minimum wage for skilled labourers would increase by 7% next year, he added. It wasn’t easy, but an agreement on wages has been reached by the representatives of the government, employers and unions, he said. With the wage increases the government wants to see the minimum wage reach 50% of the average wage by January 1, 2027, he added.
