Despite COVID-induced economic crisis, business confidence remains upbeat moving into 2021.
Most businesses in Hungary believe the domestic and global economies will improve next year and that the greatest challenge to profitability will come from collecting outstanding invoices. 57% of respondents to the 2020 Payment Practices Barometer survey in Hungary reported a negative impact on revenue and 50% on cash flow. This compares favourably to Eastern Europe as a whole where 59% of businesses reported a negative impact on revenue and 51% on cash flow.
When asked what kind of measures they needed to take to protect their business from the negative impact of the pandemic-led economic crisis, the most frequent response was that they needed to delay invoice payments to their own suppliers (35%). Businesses in Hungary also reporting workforce lay-offs and hire freezes, suggesting the pandemic may have had a high impact on the local labour market.
Key takeaways from the report
- Trade credit withdrawn from higher-risk businesses
- More than half of businesses in Hungary lengthen payment terms
- Overdue invoices increase, but stay in line with regional averages
- Majority of Hungary businesses demand payment guarantees
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Hungary during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Construction materials
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