Declining number of companies, slowing closures – where is the Hungarian entrepreneurial sector heading?

By: Trademagazin Date: 2025. 03. 21. 12:31

The number of partnerships has already decreased by more than 2,000 this year. Although the GKI business confidence index showed an improvement, the number of businesses does not yet reflect this. The number of company closures has not increased, and data on company proceedings in February indicate that the decline in the number of businesses may be slowing down.

At the beginning of the year, the number of new business registrations fluctuated: in January, more companies were established than a year earlier, but in February there was a decline. According to OPTEN data, there were more than 1,200 fewer businesses registered in February than a month earlier, so the number of businesses has already shrunk by more than 2,000 since the beginning of the year.

The volatility of the economic environment may continue to prompt businesses to be cautious. Although retail sales increased in January 2025 (by 4.7% compared to the same period of the previous year), industrial production remained weak, with an annual decrease of 3.9%. While household consumption appears to be stabilizing, the industrial sector is not yet showing a clear recovery.

OPTEN: Fewer new companies are being formed, but the rate of closures is slowing

According to OPTEN data, more than 1,200 companies had disappeared from the market by the end of February, so the number of companies has already decreased by more than two thousand since the beginning of the year. The number of company formations varied, with nearly 2,000 new companies being created in January, which is 500 more than a year earlier, but in February there were 700 fewer new companies being formed than in February 2024.