The additional money that Hungarians get to keep due to a reduction of personal income taxes is not yet being turned into savings, business daily Világgazdaság reported.
Apparently, the general Hungarian public reacted to the government measure by choosing to up its consumption, realizing earlier delayed purchases and also repaying debts instead of putting away the extra sum.
Accordingly, a notable boost in savings could only be seen at the end of the first half of 2011, CEO of fund manager Pioneer Alapkezelő Sándor Vízkeleti told the paper.
At the same time, the deteriorating economic conditions have already encouraged Hungarians to start accumulating savings in order to preserve a certain quality of life and also out of fear of unemployment.
Vízkeleti said the majority of customers are looking for low-risk solutions. On average, clients expect 6-7% interests on their investments, which they can in most cases get from comparatively safe options. Only if this level cannot be achieved will they opt for more risk solutions, he added. (BBJ)