Every third organization expects a recovery in the Hungarian economy within two years

By: STA Date: 2022. 09. 20. 08:10

More than a thousand domestic organizations operating in the field of farming, management and HR have declared what effects they expect in the shadow of the Russian-Ukrainian war. The online questionnaire survey was conducted by the researchers of the Hungarian University of Agricultural and Life Sciences with the assistance of experts from eight Hungarian universities and one university abroad, as well as several professional organizations between May 1 and June 25, 2022.

Hungarian companies are optimistic (Photo: Pixabay)

“Our research group with national coverage has been following Hungarian business organizations for years. The main question of our latest research was, after recovering from the two-year crisis of the coronavirus and in the shadow of the Russian-Ukrainian war, what kind of effects do the companies and institutions operating in the fields of management, management and HR expect,” emphasized Dr. József Poór, professor emeritus of MATE, the head of the research group.

It turned out that only 4.8% of the organizations participating in the investigation had an action plan even before the outbreak of the war, of which 1.8% of the organizations can use it in its original form, and 3% after changes.

During the period of the survey, 63.3% of the responding organizations did not yet feel the need to develop an action plan for a war emergency. It can be assumed that at that time the majority of the organizations were still optimistic about the future and did not see the substantial risk of the escalation of war processes. This opinion is reinforced by the fact that only 25% of respondents plan to develop such a scenario.

Based on the results, it can be said that more than 70% of the responding organizations expect inflation above 10% as a result of the war crisis, and at the same time, according to more than a third of them, a significant decline is expected in Hungary. At the same time, every third of the respondents expects an upswing in the Hungarian economy within two years. Nearly half of the respondents predicted an increase in food and raw material prices of over 20%. According to the majority of the organizations, technological developments are slowing down because of the war, but at the same time, nearly a third of them believe that technological developments with support still have a stimulating effect.

The domestic organizations under investigation naturally expected a drop in sales in the second quarter of the outbreak of the Russian-Ukrainian conflict

Most of them are therefore currently pursuing a cautious business strategy and have not yet decided to take drastic change management steps. In addition, they are looking for opportunities to take advantage of the market changes brought about by the war, mainly by demonstrating ethical business behavior. This can also be attributed to the fact that 10% of the responding organizations expect an increase in income this year as well.

Opinions are very divided regarding the measures taken or intended to be taken to mitigate the negative effects of the Russian-Ukrainian war

35.5% of the respondents are not aware of the seriousness of the situation and the possible losses, so they cannot even measure its impact on the organization. 14.1% of the organizations stated that it was not necessary to initiate changes, since the war did not have a particular effect on their operations, and even a certain part of them were able to develop during this period.

26.4% of the respondents reported that new organizational and HR solutions must be sought, because it is no longer possible to return to the pre-war situation. In order to mitigate the negative effects of the war, retaining key people is considered important (22.2%), general cost reduction (21.7%) second, and organizational efficiency improvement third (21.1%).

MATE