Half of the companies are in a worse financial position than a year ago, mostly due to inflation

By: Trademagazin Date: 2023. 05. 24. 13:26

Despite high inflation, Hungarian businesses are in the European middle ground in terms of economic downturn. The majority of domestic companies are in a worse financial position than a year ago, and more than a tenth of company managers are planning layoffs. Unpaid accounts receivable can threaten supply chains.

Hungarian companies do not stand out significantly from the European average in terms of how they were affected by the global economic difficulties of the past year – this is evident, among other things, from the European Payment Report (EPR) of the claims manager Intrum. In the survey, more than 10,000 business leaders in 29 countries were asked about the financial situation of companies and their general mood in the first quarter of 2023.

High inflation across Europe is forcing businesses to prioritize cost-cutting over growth. Rising prices and high interest rates are eating into corporate profits, and a general lack of liquidity is straining supply chains.