MNB: Most Companies Blame GDP Contraction on Inflation

MNB

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Domestic GDP decreased by 0.9%, the background of which was mainly the falling internal demand due to high inflation, according to a study released by the National Bank of Hungary (MNB).

By analyzing company questionnaire surveys, the MNB examined what limits the business of companies.

The responses unanimously highlighted a lack of demand, rising costs and inflation as the most significant factors. If the primary problem is inflation, only price stability can restore economic confidence, production and investment growth.

The summary also revealed that the financial situation of most companies is stable, and they have reserves, but despite the opportunities, they do not spend money on investment.

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