Trust Among Hungarian CEOs in Company Growth Declines Amid Economic Uncertainty
A recent survey reveals only 39% of Hungarian CEOs believe their companies can grow this year, contrasting with global trends.
A recent survey conducted by PwC has highlighted a cautious outlook among Hungarian chief executives regarding their companies' growth prospects for the year.
Only 39% of the surveyed CEOs expressed confidence in revenue growth, marking historically the lowest level recorded in PwC's surveys.
In contrast, 60% of respondents maintained an optimistic view about the overall economic climate in Hungary.
Looking ahead to 2025, the Hungarian CEOs forecast a GDP growth of 1.8%, considerably lower than the government's estimate of 3.4%.
They also anticipate an exchange rate of 415 forints to the euro and an inflation rate of 4.8%.
The survey further reveals a stark contrast between the perception of the global economy by Hungarian CEOs and their international counterparts.
While 58% of global executives foresee a faster pace of economic growth, 70% of Hungarian CEOs exhibit similar optimism, with only 10% expecting a slowdown—this represents an unprecedented level of confidence among Hungarian leaders regarding global growth rates.
Concerns over talent shortages are predominant, with 44% of Hungarian executives reporting worries on this front, compared to 23% globally.
The anxiety over inflation has notably decreased from 51% last year to 39% this year.
However, there is an upward trend in concerns regarding cyber risks, which have increased from 33% two years ago to 38% currently.
Regarding long-term viability, 40% of CEOs stated that their companies would not be sustainable in a decade if current conditions persist.
The primary reasons cited for this lack of sustainability include intense industry competition (48%), changes in the regulatory environment (47%), rising costs (46%), and declining demand (44%).
In terms of mergers and acquisitions, only 29% of Hungarian firms plan to pursue acquisitions in the next three years, contrasted with 55% of companies globally.
Hungarian companies interested in acquisitions are primarily focused on acquiring their current competitors, whereas companies worldwide tend to use acquisitions for entry into new sectors.
The survey also indicates that 20% of Hungarian executives believe generative artificial intelligence plays no role in their businesses, while the remaining 80% report efficiency gains attributed to AI implementations.
Additionally, 66% of Hungarian CEOs do not consider contributions to their company's sustainability as part of their personal performance metrics.
This is significantly higher than the 40% global average, indicating a lower prioritization of sustainability issues locally.
Alongside this, only 13% of CEOs recognize climate change as a threat to their company's operations, suggesting that sustainability goals are not a top priority for Hungarian executives.
Only 39% of the surveyed CEOs expressed confidence in revenue growth, marking historically the lowest level recorded in PwC's surveys.
In contrast, 60% of respondents maintained an optimistic view about the overall economic climate in Hungary.
Looking ahead to 2025, the Hungarian CEOs forecast a GDP growth of 1.8%, considerably lower than the government's estimate of 3.4%.
They also anticipate an exchange rate of 415 forints to the euro and an inflation rate of 4.8%.
The survey further reveals a stark contrast between the perception of the global economy by Hungarian CEOs and their international counterparts.
While 58% of global executives foresee a faster pace of economic growth, 70% of Hungarian CEOs exhibit similar optimism, with only 10% expecting a slowdown—this represents an unprecedented level of confidence among Hungarian leaders regarding global growth rates.
Concerns over talent shortages are predominant, with 44% of Hungarian executives reporting worries on this front, compared to 23% globally.
The anxiety over inflation has notably decreased from 51% last year to 39% this year.
However, there is an upward trend in concerns regarding cyber risks, which have increased from 33% two years ago to 38% currently.
Regarding long-term viability, 40% of CEOs stated that their companies would not be sustainable in a decade if current conditions persist.
The primary reasons cited for this lack of sustainability include intense industry competition (48%), changes in the regulatory environment (47%), rising costs (46%), and declining demand (44%).
In terms of mergers and acquisitions, only 29% of Hungarian firms plan to pursue acquisitions in the next three years, contrasted with 55% of companies globally.
Hungarian companies interested in acquisitions are primarily focused on acquiring their current competitors, whereas companies worldwide tend to use acquisitions for entry into new sectors.
The survey also indicates that 20% of Hungarian executives believe generative artificial intelligence plays no role in their businesses, while the remaining 80% report efficiency gains attributed to AI implementations.
Additionally, 66% of Hungarian CEOs do not consider contributions to their company's sustainability as part of their personal performance metrics.
This is significantly higher than the 40% global average, indicating a lower prioritization of sustainability issues locally.
Alongside this, only 13% of CEOs recognize climate change as a threat to their company's operations, suggesting that sustainability goals are not a top priority for Hungarian executives.
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