Business Climate Index Up but Still Low in Hungary

The GKI business climate index rose markedly in January. It has reached its highest level since the start of the epidemic, but made up just over half of its April fall.

According to a survey conducted by the Budapest-based GKI Economic Research with the support of the EU, business and consumer expectations also improved in the first month of the year.

In the business sphere, all sectors except construction became more optimistic in January, but only industry managed to approach the level of March last year.

The GKI consumer confidence index strengthened back to almost its November level in January, following a significant decline in December, but is still noticeably below its July peak, following a fall in the spring. It assessed the development of the population's own financial situation as moderately improving compared to December. The assessment of one’s own ability to save in the future has improved significantly. Consumers also saw the current opportunity to buy high-value consumer goods as more favorable than in the previous month.