At the Portfolio Retail Day 2025 conference, Gabriella Heiszler, CEO of Spar Magyarország Kereskedelmi Kft., addressed current challenges facing the retail sector, particularly in relation to consumer purchasing behavior in Győr, Hungary.

Heiszler stated, 'We are experiencing a crisis of trust: Győr has emptied commercially; everyone is shopping in Slovakia.' This observation underscores a notable shift in consumer habits that has affected local businesses.

Heiszler also noted that promotional activities are at an all-time high, stressing the need to intensify communication regarding payment weeks every month.

'The increase in turnover largely depends on the price margin stop and how long it will last,' she remarked, indicating that the current conditions may only be sustainable until the end of May. Post that period, adjustments to costs may be necessary.

The CEO highlighted that the government expects the retail sector to contribute to price reductions, yet acknowledged it as a multifaceted challenge involving numerous stakeholders, emphasizing that they cannot resolve it independently.

Suppliers, too, have expressed concerns about the rapid inflation of Hungarian food prices, which are rising at twice the rate of the EU average, further complicating the situation.

The government asserts that the prices of foods affected by the margin cap have decreased by an average of 17.7 percent; however, industry leaders argue that this is merely a superficial solution to deeper issues.

As noted, the margin cap has resulted in a loss of 1.5 billion forints for Spar.

In another sector, the Hungarian government plans to conclude the sales of existing Bónusz Magyar Állampapír (BMÁP) series by April 7, introducing two new series with lower interest premiums.

The new bonds, available until April 7, will present an interest premium of 1.25 percent, with an initial premium of 1 percent, and an additional 1 percent loyalty premium for five-year investments, totaling a 2 percent premium by maturity.

The new bonds will have a starting interest rate of 7.32 percent, slightly higher than the 7.25 percent offered by the existing BMÁP series, attributed to significant increases in government securities yields.

This move aligns with statements made by Economic Minister Márton Nagy, who indicated that the current yields on retail government bonds are excessively high, suggesting that some government securities could be redirected towards institutional investors to increase their weight in debt financing.

The plans for further interest rate adjustments reflect ongoing governmental efforts to respond to economic conditions while maintaining a balance between retail and institutional bond offerings.

Meanwhile, on the domestic fuel market, gasoline prices are projected to increase by 5 forints per liter and diesel by 2 forints starting April 3. The market's regulatory framework will dictate the exact price modifications.

The most recent average prices as of April 2, 2025, stand at 609 forints per liter for 95-octane gasoline and 617 forints per liter for diesel.

In real estate, March has shown a continuation of the upward trend, with 12,200 property transactions marking a 7 percent increase compared to the previous month and a 10 percent increase year on year, according to Duna House.

The first quarter of 2025 recorded a total of 32,805 transactions, reflecting an 8 percent increase over the same period last year.

However, rising prices have begun to dampen demand in late March.

Additionally, the mortgage market is seeing expansion, with signed loan agreements totaling 125 billion forints in March, representing a 9 percent increase compared to the previous month and a 28 percent increase over the same period last year as per data from Credipass.

Lastly, MBH Bank has announced a planned dividend payment of 36.9 billion forints to its shareholders, equating to 123 forints per share.

The dividend payout, commencing on May 21, 2025, will follow a general meeting scheduled for April 23. The Hungarian state currently holds a 20 percent stake through Corvinus Investment Zrt., while significant portions of the bank are reportedly tied to the portfolios of various private equity funds.