Weak HUF good for only a few

According to Tamás Éder, chairman of ÉFOSZ, the weakness of the HUF will only benefit a very limited number of food processing enterprises. In his opinion, it is unlikely that Hungary will become a cheap location for multinationals to operate production facilities in once again, because this would require the HUF to remain below the 300 per EUR limit in the long run. Following last year’s 2 percent drop in retail sales of food, a slightly larger drop is expected this year. Demand is also expected to drop in our leading export markets. In the opinion of György Vámos, secretary of the National Retail Association, it would require the exchange rate to stabilise in the HUF 300-310 per EUR range for big retail chains to reorganise their supply channels. Structural changes are expected in retail trade. The number of smaller retail units will also continue to shrink, as these are unable to compensate for the effects of restrictive economic policy.