The solvency of Central Hungary is still the worst, but the region has started to improve strongly

By: Trademagazin Date: 2024. 07. 03. 12:10

The effects of high inflation are still felt more strongly in regions more embedded in the world economy, but Central Hungary is catching up at a fast pace: its solvency is improving. In the first quarter of 2024, the solvency of the population decreased in only one region, so it is expected that in the next quarter it will be somewhat easier for Hungarians to meet their due financial obligations. Based on GDP, however, the gap between Budapest and the countryside is getting bigger and bigger.

Last year’s inflationary situation was felt most by the population of more developed regions, while the ability to pay of families in lower-income areas decreased less. The weakening of the economy affects Central Hungary most severely, since the beginning of 2023 the solvency of the population has been the worst in this region, the Intrum Regional Solvency Index currently shows 48.87. The economic difficulties affected the eastern part of the country less: the solvency index stands at 69.33 in Northern Hungary, 68.55 in the Northern Great Plain and 69.86 in the Southern Great Plain.

In the first quarter of this year, in addition to all this, the solvency increased seriously in most regions, so it is expected that Hungarians will be able to meet their payment obligations somewhat more easily in the coming months. The increase was the most spectacular in Central Hungary, which has the worst solvency and includes Budapest: in the first quarter of 2024, the solvency index increased to 48.9 points, which corresponds to an increase of 21.6 percent compared to the previous quarter. Solvency also increased markedly by 17 percent in Southern Transdanubia and by 11.6 percent in the Northern Great Plain. Only in Central Transdanubia did the situation of the population worsen compared to the previous quarter, by 2.2 percent.