Coface: An unfavorable turn has occurred in the economies of the region, including in Hungary

Central and Eastern European economies showed signs of recovery in 2021 and the first half of 2022. Despite the significant differences, the economy in most countries expanded quite strongly. Support measures introduced by governments in 2020 in response to the economic crisis caused by the coronavirus epidemic contributed to the fact that relatively few businesses became insolvent. The measures helped companies even in 2021, when they could take out loans at low interest rates. However, the favorable environment has changed, according to the regional analysis of the credit insurance company Coface.

Grzegorz Sielewicz, Coface’s chief economic analyst for the Central and Eastern European region, said: “In 2022, we saw a clear increase in the number of insolvency proceedings. This can be primarily explained by the fact that the companies had to face several challenges at the same time, which appeared suddenly.” Such was, among others, the economic uncertainty caused by the Russian-Ukrainian war, which played a significant role in the rise in energy and raw material prices. In addition, the series of increases in loan interest rates and high inflation caused problems for companies.