According to preliminary data from the Hungarian National Bank (MNB), as of the first quarter of 2025, Hungarian households held 7,063.4 billion forints in cash, with an additional 12,172.8 billion forints in deposits sitting uninvested in bank accounts.

This places the total cash and uninvested deposits at 19,236.1 billion forints, marking a significant increase from the 18,518.7 billion forints recorded in the last quarter of 2024, representing a 3.8% rise.

When compared to the data from the first quarter of 2024, there is a notable increase of 12.4%.

The population of Hungary is estimated at 9,540,000 as of January 1, 2025, resulting in an average of 2,016,367 forints per person sitting in cash or uninvested deposits.

Experts from Bankmonitor indicated that the cash holdings, which do not accrue interest, could have been invested in various financial instruments offering better returns.

Savings accounts often provide negligible interest, with special savings accounts yielding around 3-4%, while inflation further reduces the real value of cash holdings.

For instance, the starting annual interest rate for certain government bonds available a year prior, such as the 2032/J PMÁP, was 7.90%.

Even after factoring in transaction costs, an effective return of 6.90% could have been achieved, leading to a potential profit of over 1,327 billion forints had households invested their cash.

This translates to a loss of approximately 139,129 forints per person due to not utilizing these funds in comparatively low-risk investment products.

Shifting focus to the government’s forthcoming budget for 2026, officials from the Ministry of Economic Development have articulated that the budget does not primarily serve the purpose of election-related distributions, despite the inclusion of certain expenditures that may appear politically opportunistic, such as tax exemptions for families and state funding for various projects.

The proposed 2026 budget includes a modest increase of 2.2%, which does not keep pace with the projected inflation rate of 3.6%, potentially resulting in a decrease in real expenditures.

Notable allocations include 21.2 billion forints for the ongoing Steindl Imre program, which has consumed hundreds of billions over the past decade, and 20 billion forint earmarked for investments in Budapest's historical sites.

The budget outlines nearly 200 billion forints dedicated to governmental communication, with 39.5 billion specified for communication expenses and 141 billion aimed at supporting state media, which prominently disseminates the government’s narrative.

Funding for significant state and sports events is also highlighted, with allocations of 26 billion forints and 38 billion forints, respectively.

While sports funding is set to decrease, the Hungarian Football Association is still projected to receive 16 billion forints.

Additionally, in stark contrast, the budget allocates only 13.1 billion forints for investments in healthcare and hospitals, and merely 4.3 billion for education renovations, indicating ongoing challenges in these sectors.

In comparison, the Hungaroring’s operations and Formula 1 racetrack renovations are slated for 43 billion forints, and 44.5 billion forints for the modernization of the Budapest-Belgrade railway, while state child accident insurance receives only 100 million forints.

The government's investment in neglected energy infrastructure is set to continue, with 155.7 billion forints for water utility development and 75 billion for rebuilding the electricity and gas network.

Observations suggest that much of this funding may cater to the water demands of battery plants situated in rural municipalities like Debrecen and Nyíregyháza.

In terms of utility cost reductions, the government plans to allocate over 1 trillion forints for the upcoming year, with 228 billion forints directed towards public institution subsidies and 792 billion forints for residential support.

Regarding healthcare funding, the government has not proposed significant salary increases or renovations in the upcoming budget.

Only three private and religious institutions are listed for renovation under the Steindl Imre program, accentuating the shift of patients to the private sector as the public healthcare allocation barely reflects inflation.

Healthcare expenditures are projected to rise nominally by just over 5%, insufficient to meet ongoing inflationary pressures or to retain medical professionals, with any salary improvements likely limited to those on minimum wage.

This trend suggests a continuation of understaffing and increased pressure on healthcare workers.

As the economic landscape evolves, the production slump in Hungary's battery manufacturing sector has significantly impacted GDP, with a nearly 50% decline in production year-on-year, attributed largely to decreased orders facing the country’s major battery manufacturers.

This sector is reported to be responsible for 0.2 to 0.3 percent of the GDP contraction of 0.4 percent observed in early 2025. The economic analysis indicates that challenges persist for the regional market amid competitive pressures from Asian manufacturers.