K&H: This is how large companies see the state of the economy

By: Trademagazin Date: 2024. 03. 06. 12:23

According to almost half of the large domestic companies, the economy could be even weaker in one year’s time, according to the latest results of the K&H large company growth index. However, in a three-year time frame, the picture is already more favorable, here three out of ten companies expect a stronger performance than at present. The processes taking place in the economy affect the effectiveness of companies to varying degrees. Currently, companies mostly depend on inflation and the government’s economic policy for their profitability, but domestic purchasing power and changes in supplier prices have also become extremely important again.

According to the KSH report, according to the raw data, the Hungarian GDP practically did not change in the fourth quarter of 2023, and according to the seasonally and calendar-adjusted and balanced data, it increased by only 0.4 percent compared to the same period of the previous year. According to the latest results of the K&H large company growth index, companies expect an even smaller volume of growth over a one-year period.

“Based on our survey indicating the expectations and plans for the next year of Hungarian companies with an annual turnover of over two billion forints, in a one-year time frame, there are still a larger proportion of those who expect a slowdown in the current economic growth (44%), while far fewer assume an improvement (27 %). In the longer term, however, the sector is much more optimistic. Although the majority do not expect a change in the performance of the economy in a three-year period (58%), a third of them expect a higher growth than the current one and only 8% a deterioration. Moreover, the proportion of the latter was 18 percent in the previous quarter. Based on the expectations, it therefore seems that the period until 2027 may be gradually easier for companies”

– said Gábor Rajna, head of K&H’s Corporate Division.