By 2050, the number of people living with dementia in the European Union is projected to rise by 58% to more than 14.3 million. Hungary is expected to see dementia prevalence increase by nearly 38%, Horváth warns.
The economic burden extends far beyond medical treatment and formal long-term care. Lost earnings, reduced quality of life and the enormous contribution of unpaid caregivers must also be considered. As aging populations shift more household and public spending toward dementia care, pressure on insurance systems and long-term care financing will intensify.
Cognitive decline can also affect financial decision-making, asset accumulation and participation in capital markets. This makes proactive financial and legal safeguards increasingly important, particularly arrangements that allow fiduciary responsibility to be transferred before individuals lose the capacity to protect their assets.
Horváth says the labor market will also face growing pressure. Working-age caregivers often reduce working hours, sacrifice career progression, or leave employment early. More flexible working arrangements, caregiver leave, and targeted support could help employers retain these workers.
“At the same time, Hungary faces a severe shortage of trained dementia caregivers, nurses and medical specialists. Addressing this deficit will require an investment in recruitment, training and long-term retention,” Horváth notes. People in the early stages of dementia could also remain economically active for longer if employers provide appropriate workplace accommodation and reduce stigma.
The demographic shift is also creating new business opportunities. Demand for assistive technologies, remote health monitoring, AI-supported diagnostics and smart-home safety systems is expected to expand. However, Hungary’s ability to build a competitive age-tech sector may be constrained by weaknesses in research financing.
Unlike several European countries that provide dedicated long-term dementia research funding, Hungary has no ring-fenced national dementia research fund. Hungarian research centers often depend heavily on competitive grants, creating vulnerability and limiting continuity, the department head says.
Traditional sectors, including banking, retail, hospitality and transport, will also need to adapt to a growing cognitively vulnerable customer base. Simpler interfaces, accessible environments and specialist staff training could increasingly become competitive advantages.
Prevention and early intervention are equally important. Research suggests that up to 45% of dementia cases may be linked to modifiable risk factors, including diet, physical inactivity and pollution.
“Preventive public health investment should therefore be viewed not only as a medical priority but as an economic strategy,” Horváth argues.
Hungary is also among those EU countries that still lack a national dementia strategy. A coordinated framework could align prevention, diagnosis, treatment, care, workforce planning and research, while sustained dedicated funding could support new therapies, technologies and care models, he says.
For Hungary and Europe, dementia is rapidly becoming a question of economic resilience. Without stronger support for caregivers, workforce development, research and prevention, the growing burden risks placing increasing pressure on public finances and labor markets. Adapting to this demographic transformation is no longer simply a social policy issue but a central economic challenge.
This article was first published in the Budapest Business Journal print issue of July 17, 2026.
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