K&H: The Russian-Ukrainian conflict affects the operation of almost all large Hungarian companies

By: Trademagazin Date: 2022. 08. 15. 11:10

Fewer and fewer large domestic companies expect the end of the Russian-Ukrainian military conflict this year, even though the international situation is very decisive for them in terms of their financial and investment plans, according to the K&H large company growth index. In addition, exchange rate movements pose an increasing challenge for them, and more than two-thirds of companies expect the HUF to weaken further.

Although 61 percent of the majority of large companies still believe that the Russian-Ukrainian military conflict can end this year, compared to the previous quarter, the proportion of large companies who believe that this is unlikely has jumped from 8 to 20 percent. This is evident from the latest results of the K&H large company growth index, which examines the expectations for the next 12 months of Hungarian companies with a sales revenue of over two billion forints every quarter.

“The question is also relevant because the international situation strongly influences the expectations for the next year for the vast majority of large companies. In our research, 87 percent of them said that it has some level of influence on the company’s financial expectations and investment plans, and in the case of every third company, this is decisive. Only the companies in Western Hungary are in a slightly more favorable situation, because in their case the impact of the conflict appears to a lesser extent. 8 out of 10 companies indicated that their expectations are influenced by the Russian-Ukrainian situation, including 17 percent to a significant extent”

– informed Gábor Rajna, head of the K&H Business Clients Division.