In the third quarter, out of a 100 forints, 89 was invested in government security by the Hungarian population, and thus for the first time in history, more household money lies in sovereign bonds than in bank accounts, as the preliminary financial accounts of MNB (Hungarian National Bank) show.
This year, the Hungarian state acquired 74 forints out of a 100 so far while the financial sector’s own products, especially savings of a self-provident kind, have been performing poorly. For now, cash is inexorable as well, reports Portfolio.
The gross financial assets of households will probably reach 60 thousand billion forints by the end of the year since, at the end of September, it was already estimated at 59 253 billion forints. Since meanwhile, the debt reached 9,722 billion forints, the net asset of households reached 49,532 billion forints at the end of the third quarter.
Its growth rate is higher as well: the sum of all household savings increased by 11.1% in the past year after increasing by 10.6% in 2018. Since yearly inflation was under 3%, the growth increased in real terms from 7.7% last year to 8.1% this year.
For the first time in history, the Hungarian population holds more money in sovereign bonds than in bank accounts since the former’s stock surpassed 7,400 billion forints.
The cause behind all of this is definitely the change in the sales strategy of Hungary, including the popularity of MÁP+ (Hungarian Government Security Plus).
Stocks in bank accounts and cash increase slowly but surely – these are at the second and third place. Investment units have been decreasing since the start of the year. In addition to the exclusionary effect of MÁP+, the ruling restriction of real estate funds return had a negative effect on the fund management sector as well.
Beside sovereign bonds, the stock pool increased significantly in the last year, but that is because of re-evaluation and not because of transactions. It is telling that after sovereign bonds and stock shares, pools of bank accounts and cash grew the most substantially, meaning that the Hungarian population is not that good with liquidity in the current environment of yield and sale.
- Investments record high in 2019, says Hungarian foreign minister
- HungaryTrends – The week in business and finance
Transaction data is the most telling about what saving and investment options the Hungarian population chooses. Since the beginning of this year, 1,629 billion forints of fresh money went into sovereign bonds while the whole financial savings market grew to 2,205 billion forints on a transactional base.
Out of a 100 forints, 74 went to sovereign bonds while 15 stayed in bank accounts and 11 forints remained in cash.
In the third quarter of the year, this phenomenon is more dramatic; out of a 100 forints of savings, 89 forints wandered into sovereign bonds.
Source: portfolio.hu
please make a donation here
Hot news
Top Hungary news: Video of Gellért Hotel, Robbie Williams in Budapest, Magyar denounces ex-girlfriend — 13 November, 2024
Hungarian FM Szijjártó highlights strict environmental standards for battery plants in Parliament hearing
Robbie Williams returns to Budapest in 2025!
Budapest hosts 23rd European Tourism Forum, highlighting sector’s vital role in economic growth
Controversial Hungarian military drama ‘S.E.R.E.G.’ scores 2 on IMDb despite state support, gains top ratings from Bangladesh and Russia
Hungarian government introduces zero-interest loans for young Hungarian workers as part of new economic policy