Those aren’t the only findings revealed in PwC’s 14th Hungarian CEO Survey.
Local business leaders were cheerful overall when asked about growth perspectives. While 70% of respondents foresee global economic acceleration, an all-time high to date in the survey’s history, up to 60% expect Hungary’s economy to pick up. This high level of optimism dips significantly in terms of the outlook of their own companies’ expansion, though, given that just 39% express strong confidence in a positive development.
“The change in confidence about improving economic growth has always signaled the direction GDP will change. The current results suggest that last year’s growth will accelerate,” said Szabolcs Mezei, a partner at PwC Hungary, at a press conference presenting the results of the 14th survey. “Yet, Hungarian CEOs are less confident than ever about their own revenue growth. The growth of some could easily present a problem for many.”
The CEOs surveyed predict Hungary’s GDP will grow by 1.8% in 2025, with inflation at 4.8% and an exchange rate of 415 forints to the euro. By comparison, the National Bank of Hungary (MNB) expects an inflation range of 3.3-4.1% and GDP growth of between 2.6% and 3.6%.
In geopolitical forecasting, Hungarian business leaders count on the Russian-Ukrainian war to end in 2026, a date they have pushed back year after year. (It is perhaps useful to note that opinions were surveyed between October and December 2024, before President Donald Trump had even assumed office, let alone kick-started peace talks with Russia’s Vladimir Putin.) Similarly, the CEOs anticipate Hungary’s adoption of the euro in 2034, which is also a year later than previous predictions.
While the economic outlook is apparently improving, Hungarian CEOs are more concerned than their global counterparts about critical external risks. The biggest challenge remains the skills shortage, with 44% of respondents citing it as a major concern, almost double the global average of 23%.
Worries about geopolitical conflicts (36%) and macroeconomic volatility (38%) remain essentially unchanged from last year, while inflation concerns have eased from 51% to 39%.
Despite these concerns, 60% of Hungarian CEOs believe their organizations will remain viable for at least the next decade, though only 12% expect still to hold their current CEO position then. Those doubtful about their companies’ longevity cite external pressures such as intense competition (48%), regulatory changes (47%), rising costs (46%), and declining demand (44%).
In contrast, executives with confidence in their company’s long-term viability attribute their optimism to internal factors such as sound strategic decisions (64%), operational efficiency (42%), and workforce preparedness (37%).
The survey also reveals a strong appetite for innovation and restructuring. More than half (55%) of Hungarian companies have developed new products or services in the past five years, outpacing the global average of 38%. Additionally, 40% have established strategic partnerships, and 38% have expanded their customer base.
Regarding revenue sources, Hungarian firms generated 13% of their income from new products or markets and 4% from entirely new business lines last year. Meanwhile, 29% of Hungarian companies plan acquisitions within the next three years, though most aim to acquire competitors rather than enter new industries.
That contrasts starkly with the global trend, where cross-industry acquisitions are more common, Mezei noted. According to the PwC expert, the moderate Hungarian activity forecast may also be due to the upcoming 2026 parliamentary elections, which tend to delay such strategic decisions.
AI is increasingly becoming a focal point for Hungarian businesses, with 80% of CEOs reporting efficiency gains from its implementation. Some 38% of Hungarian executives trust AI, which is not only a much higher level than the Central and Eastern European average (19%) but is also a regional record. And yet, even that figure hints at skepticism.
Despite this trust gap, expectations for AI’s impact remain high. Two-fifths of CEOs foresee GenAI-driven profitability gains this year, and nearly half (49%) expect AI to be fully integrated into their technology platforms and workflows.
“The keys to business success are trust and cooperation,” noted László Radványi, the country managing partner of PwC Hungary. “It is perplexing that CEOs plan to future-proof their companies with a technology they don’t fully trust. The question is whether their trust in employees’ AI skills offsets their skepticism towards the technology itself.”
Sustainability remains a secondary concern for Hungarian CEOs. Only 34% have their personal performance assessed based on sustainability targets, far lower than the global figure of 60%. Additionally, just 13% of Hungarian business leaders view climate change as threatening their operations.
True enough, some companies have embraced climate-friendly investments, but the primary motivation has been cost savings rather than environmental concerns. Just under half (49%) of companies that made green investments in the past five years reported cost reductions, while only 21% said they saw revenue growth as a result. Regulatory complexity remains the most significant barrier to sustainability investments, followed by economic returns and funding limitations.
“While the undeniable signs of climate change are already seriously affecting actors in the value chain, CEOs do not perceive this as a threat on their time horizon, which is why sustainability is not high on their agenda. In addition to facilitating climate-friendly operations, regulators must also enable businesses to integrate compliance with sustainability requirements into their value choices in a normative manner,” Radványi added.
This article was first published in the Budapest Business Journal print issue of March 7, 2025.
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