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SMEs plan to invest less next year

Small and medium-sized enterprises (SMEs) in Hungary plan to invest less for the next year based on the latest results of the K&H SME Confidence Index, writes uzletem.hu.

The most popular goal is IT development, which will continue to be much needed by companies if they want to remain competitive in the situation created by the coronavirus epidemic.

According to the data published by the Central Statistical Office (KSH) in May, investments in the national economy decreased by 1.8% in the first quarter of 2020, mainly due to the domestic and international economic effects of the coronavirus epidemic.

The epidemic had an almost immediate effect on companiesʼ willingness to invest, as a quick survey conducted during quarantine found a drastic 41% reduction in development thinking.

However, this very cautious investment intention was consolidated in the second quarter, and the willingness to invest has already strengthened significantly compared to the spring low, the business website notes.