The viral epidemic put domestic small and medium-sized enterprises in a situation they did not encounter during the 2008 economic crisis. The sector is facing serious problems, as almost half of the companies have been severely affected by the sudden shutdown, according to a survey conducted by K&H in April. Firms mainly experienced a lack of domestic demand, and their work processes and working conditions within the company also had to be drastically restructured. More than 60 percent of them have introduced austerity measures to mitigate the damage, and a third of the companies have enough financial reserves for just a month or two.
“The economic effects of the virus epidemic in Hungary cannot yet be predicted, but it is certain that Hungarian micro, small and medium-sized enterprises are most exposed to the negative consequences, so we asked our customers how they were affected by the current situation,” said Roland Kökény. , Head of Marketing, K&H SME Segment.
Half of Hungarian SMEs were moderately affected, but 44 percent were heavily affected by the coronavirus, according to a survey conducted among K&H’s customers in mid-April. There are significant differences in the level of injury between sectors. One of the biggest losers in the viral epidemic is clearly tourism: 85 per cent of the sector reported that it suffered irreversible or severe losses as a result of the sudden shutdown. In addition, other trade (53 per cent) and food trade (48 per cent) were most affected, while agriculture (28 per cent) was the most affected.
Macroeconomic analysts told MTI to expect a gradual recovery in…Read more >