VOSZ Barometer: the mood in the entrepreneurial sphere is deteriorating again

Businesses see declining purchasing power, labor shortages, and backlogs of orders as the biggest risks

“We expect the 2024 GDP data to be 1.9 percent, in this regard the previous ambitious numbers had to be scaled back,” said Ákos Kozák, director of business relations at the Egyensúly Intézet. He added that the balance sheet will not be positive in the field of investments either, and only in 2025 can a larger increase of 8-9 percent be expected. “Q2 2024 uptrend appears to have broken”

Ákos Kozák emphasized.

The responses of the surveyed VOSZ member businesses also revealed that the businesses see declining purchasing power, labor shortages, and backlogs of orders as the biggest risks. From the point of view of doing business – i.e. through the experiences of their own businesses – businesses consider unprofitable operations (27 percent!), declining purchasing power (18 percent), and difficulties of business partners (16 percent) to be a major risk.

Regarding the risk of unprofitable operations, Ákos Kozák drew attention to the fact that this data does not bode well, as it appears that confidence has also “shaken” among domestic businesses, as a consequence of which the planned – and necessary from a macroeconomic point of view – entrepreneurial investments are expected to continue they will also miss out on opportunities.

“If I’m also unsure that I can complete the year as planned, then why should I plan an investment, the return on which can only be expected later?”

– asked the director of the Egyensúly Intézet from an entrepreneurial perspective.