German firms in Hungary increasingly optimistic

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German companies operating in Hungary continue to feel satisfied and optimistic about their business, a recent survey by the German-Hungarian Chamber of Industry and Commerce (DUIHK) shows. In almost all answers, managers were even more optimistic than the already very good results of the chamberʼs survey published in April.

More than two-thirds (68%) of the approximately 100 companies interviewed by the DUIHK stated that their own business situation was good, and just 3% rated it as bad. This is again significantly better than in the spring (55% good, 7% bad), and the best value since 2005, according to a press release sent to the Budapest Business Journal.

Not only is the current situation deemed as positive as ever, but also the prospects for the coming 12 months: while 52% said they expect a further improvement, only 4% expect a deterioration of their own situation.

In the current survey, 35% of companies said they expect the economic situation in Hungary would improve - exactly as many as in the spring. While in April, 10% of respondents expected a worsening of the economic situation, now only 3% shared this view.

More than half of respondents (56%) in the DUIHK survey said they would invest more over the next 12 months than in the previous period, and 61% plan to hire additional staff. In both questions, the DUIHK has never measured such high scores in its survey.

At the same time, expansion plans could yet be jeopardized by some risk factors. About 75% of the surveyed companies identified the shortage of skilled workers as one of the biggest risks for the next 12 months, followed by the rise in labor costs, which is considered by 47% as a risk. Other factors such as demand, the economic policy framework or legal stability are considered lesser risks.

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