The widespread adoption of automation is a natural evolutionary step in the business services sector, which is known for keeping pace with technological advancements. However, humans remain crucial to long-term success, as ABSL Hungary President István Lenk explains. 15
BUSINESS
Hungarians Struggle with Sleep Quality, Jysk Study Finds
Hungarians face significant challenges regarding sleep quality, with a large portion of the population struggling to get sufficient rest or waking up feeling exhausted. 12
George Szirtes Receives U.K.’s Gold Medal for Poetry
Hungarian-born British poet George Szirtes has been awarded His Majesty’s Gold Medal for Poetry for 2024 by the United Kingdom’s King Charles III, as David Holzer reports. Born in Budapest in 1948, Szirtes escaped in 1956 with his family, who settled in London. 17
Are You Sitting Comfortably?
Employee well-being should become a key factor in corporate strategy-making in business services, given that the bulk of operational costs at a BSC are HR-related. Ottó Feuertag, founder of Europa Design, aims to make it so. 16
Technical Recession is Over, but Risks Persist
The Hungarian economy grew by 0.5% in Q4 2024, lifting itself out of recession, according to recent data from the Central Statistical Office. Following the better-than-expected GDP data, experts predict a 2-2.5% expansion for 2025. But, that figure is surrounded by numerous risks. 3
Business Must do More to Curb Climate Change
Hungarian companies committed to sustainability are making strides in climate action, but experts argue the level of effort remains insufficient to meet global climate goals. 8
EDITOR-IN-CHIEF: Robin Marshall
EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Levente Hörömpöli-Tóth, Gary J. Morrell, Nicholas Pongratz.
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THE EDITOR SAYS
MORE ECONOMIC DISRUPTION HEADING OUR WAY?
From a journalist’s point of view, it is extraordinarily difficult not to write about the return to power of President Donald Trump, whose second term has started with a bang, to say the least. But here we are in Central and Eastern Europe, and how much of what he says and does genuinely impacts us? There would undoubtedly be some form of an economic peace dividend from an end to the war in Ukraine (not to mention a real human benefit for the citizens and soldiers of that country and Russia), but there is still no clarity on how we get there.
At the time of writing, the administration is not yet three weeks in office, but that lack of detail is true of many Trump policies. Take the latest, which seems to apply a real estate mentality to the intractable problem of peace in the Middle East. The president has suggested, seemingly in earnest, that the States take over Gaza, relocate its population, demine and remove unexploded ordinance, flatten whatever is left and build the “Riviera of the Middle East.” No mention of where the Gazans would go, who would authorize this redevelopment project, or what might happen to the two-state solution. Peace in the Middle East would benefit the entire planet. Whether this plan gets us any nearer that (presumably not, since Egypt, the Jordanians, the Palestinians and, perhaps most importantly, Qatar, Saudi Arabia, and the UAE have all rejected it), it doesn’t affect Hungary directly. But closer to home, there is something that certainly would impact us here. Although we know tariffs will come the way of the European Union “pretty soon,” America’s Disruptor-in-chief has not yet made
it clear exactly when or on what. The president has said, “It will definitely happen […] because they’ve really taken advantage of us” and “treated us so terribly.” The threat of import taxes has already produced results for America in Columbia, Canada and Mexico. It’s not clear what Trump would want from the EU. Greenland? A balance in bilateral trade? The Hungarian Government’s response to date seems to have been to lay blame for what is to come at the door of the European Union. “Maybe European politicians shouldn’t have leveled base accusations and criticisms at the new president of the United States,” said Minister of Foreign Affairs and Trade Péter Szijjártó. “Due to the failures and ineptitude of the EC in the past five years, the U.S. finds it easy to introduce tariffs against the EU.”
However, there is little or no mention of the fact that, given the EU trades as a single block, tariffs levied against the Union will also hit Hungary, no matter how good the relationship between Prime Minister Viktor Orbán and President Trump is. Perhaps that is what lies behind an idea Szijjártó floated in recent days: “Unless Europe wants to lose the global economic competition for good, economic policy must be placed into the hands of member states,” he said, adding, “It’s time to realize that the economy can be managed much better at a member state level.” Either way, it seems we are, once again, living through the Chinese curse of “interesting times.”
Robin Marshall Editor-in-chief
THEN & NOW
In the black-and-white photo dating from 1977 and taken from the Fortepan public archive, puppets crafted by Henrik Kemény, a Kossuth Prize-winning puppeteer and Master of Folk Art, are on display. In the color image from Jan. 29, 2025, some of Kemény’s puppets are exhibited in the Vojtina Puppet Theater in Debrecen (232 km east of Budapest by road). The photo was taken on the day that marks what would have been Kemény’s 100th birthday.
Photo by Ákos Schermann / Fortepan
Photo by Zsolt Czeglédi / MTI
1News •
macroscope
Technical Recession is Over, but Risks Still Persist
The Hungarian economy grew by 0.5% in the fourth quarter of 2024, lifting itself out of recession, according to recent data from the Central Statistical Office (KSH). Following the better-than-expected GDP data, experts predict a 2-2.5% expansion for 2025. However, that figure is surrounded by numerous potential risks and is still significantly below the 3.4% the government assumed in this year’s budget.
Change in gross domestic product (GDP) in Hungary, 2010-2024
The year-end finally brought some good news for the Hungarian economy: the volume of Hungary’s gross domestic product was 0.4% higher according to raw data and 0.2% higher according to seasonally and calendar adjusted and reconciled data in the fourth quarter of 2024 than in the same period of the previous year.
Compared to the previous quarter, GDP grew by 0.5% according to seasonallyand calendar-adjusted data, and thus the technical recession ended. In 2024, the performance of the economy was 0.5% higher according to raw data and 0.6% higher according to seasonally and calendar adjusted and reconciled data than in the previous year, the flash estimate for Q4 2024 released by the Central Statistical Office (KSH) reveals.
The Hungarian economy thus showed growth after six months of contraction. The expansion exceeded previous expectations, although this year’s outlook is very restrained for the time being. Still, GDP growth may exceed the restrained 0.6% pace seen last year.
“Based on today’s data, my 2.5-2.6% growth expectation for this year does not need to be revised for now, but of course, this is still surrounded by many risks, perhaps the most important of which is the extent of wage increases and the resulting increase in hiring, as well as the development of
external demand (thinking of the German economy, for example), which in turn affects exports,” said Gábor Regős, chief economist at Gránit Alapkezelő in a note following the publication of the fresh GDP data.
Broader-based
At the same time, this year’s growth may rest on a broader base than in 2024, and consumption, investments and exports could all contribute, Regős pointed out. The expected increase in real wages should induce the expansion of consumption, the development of the construction industry’s order book is encouraging concerning investments, and the startup of new production capacities in exports may also help.
However, the chief economist thinks that it will be a long time before the Hungarian economy can return to a growth path of around 4%.
Growth also requires a favorable external environment: this could be helped by the conclusion of the Russian-Ukrainian war, the easing of geopolitical tensions, and the strengthening of European competitiveness, Regős concluded.
The base effect does not help this year’s GDP growth, according to Péter Virovácz. The ING Bank analyst said that to meet the government’s 3.4%
forecast, the Hungarian economy would have to produce an average quarter-on-quarter growth rate of 1.3-1.4% in 2025.
“This is not unrealistic at all and does not seem impossible, as the Hungarian economy was able to do this both in the pre-COVID crisis period and in the post-COVID recovery period. At the same time, fiscal and monetary policy were significantly more supportive in those years, which cannot be said today,” Virovácz noted.
He added that external demand is much weaker than it was then, and consumer and business confidence is also more fragile. In such an economic environment, ING Bank continues to stick to its previous forecast that GDP growth will average around 2% in 2025. That was a point of view shared by others.
Substantial Recovery
"Despite the uncertainty factors, we expect a substantial recovery in the Hungarian economy in the coming quarters, as a result of which annual real GDP growth approaching 4% may be achieved by the end of 2025. However, since the annual indices may remain relatively low in the first half of this year, despite the expected substantial recovery, overall, an annual average growth of around 2.5% seems achievable by 2025,” wrote Márta BalogBéki and Zoltán Árokszállási, analysts at MBH Bank in a joint statement. Hungarian GDP developed favorably in Q4 2024; not only has the Hungarian economy exited a technical recession, but the carry-over effect also paints a more favorable picture of this year’s growth, commented Dániel Molnár, a senior analyst at Makronóm Intézet.
The KSH has not yet published detailed figures, but it is clear from the sectoral data released so far that the turnaround has occurred in broad sectors of the economy. The OctoberNovember data shows that industry, construction and, in particular, retail trade expanded quarterly. At the same time, the tourism sector closed last year with an outstanding performance, primarily due to foreign guests.
The more favorable performance of these sectors may have induced growth in other areas, such as transportation, warehousing or wholesale trade, at the end of the year.
The economy may have been driven by consumption in the fourth quarter, supported by the improving income situation following dynamic wage growth, while lending also picked up. However, the contribution of net exports may have been negative again, primarily due to the deterioration of the goods trade balance, in which the still subdued external demand, especially the weakness of German industry, played a role. At the same time, the recovery in consumption may have pulled up the volume of imports.
The quarterly growth also suggests that investments may have started to rise from their low point at the end of last year, Molnár says. As for this year, he expects domestic demand to continue to drive the economy. The improvement in the income situation may further stimulate consumption.
Source:
ZSÓFIA CZIFRA
CEE Investment
Rising, CBRE Says
Investor appetite strengthened remarkably in the last months of last year, according to CBRE Hungary’s Market Outlook 2025 event last week at the Eiffel Palace. Thanks to an exceptionally strong December, the CEE region’s investment market again crossed the EUR 10 billion mark for the year.
Real Estate Matters
A biweekly look at real estate issues in Hungary and the region
EUR 700 million-800 mln of real estate investment across all segments in Hungary this year, up from EUR 300 mln last year.
The total volume was 50% higher in 2024 than in the previous year, and investors expect a further 15-20% growth for this year as a market recovery accelerates as the year proceeds.
Last year, retail real estate was the most attractive sector; this year, logistics could be the most appealing, CBRE believes. Experts expect
“According to our property investment survey, most people in Western European markets are looking to invest in rental housing, but there is also a very optimistic mood for hotels. Last year, a third of Central Europe’s turnover went into retail property, and this year, logistics is the clear favorite and could drive the markets. The perception of office is unfairly negative, although, at current pricing, there are good opportunities for entry, especially as development volumes are low across Europe,”
said Gábor Borbély, CBRE’s director of market analysis for Central Europe.
“This year could be the year of logistics in real estate investment in Hungary,” reckons Tim O’Sullivan, head of capital markets at CBRE Hungary.
“We are currently working on real estate sales totaling almost half a billion euros, and the total annual turnover could easily be much higher, as there is a higher volume of products for sale, for example, in the case of offices,” he says.
“The coming months will be filled with active marketing for everyone to ensure that as many transactions as possible reach the finishing line and that they can then increase this year’s investment turnover,” O’Sullivan concludes.
Ruby Hotel to Open at Corvin Palace
The hotel market in Budapest continues to thrive, with the upmarket Ruby Hotels signing a lease agreement at the recently renovated Corvin Palace in Blaha Lujza tér for the hotel group’s first venture into the Central and Eastern European region.
The 181-room luxury hotel on four levels with a rooftop lounge and bar will be the final tenant at the historic building. CBRE represented the owners in negotiating the lease agreement.
“Our newest project will be housed in the historic Corvin Palace, Budapest’s oldest department store, built in 1926. The ironic landmark will be re-imagined into a vibrant hub for retail, dining, culture and seamlessly blending Ruby’s signature style with the city’s rich architectural heritage,” comments Oliver Balogh, co-owner and developer of Corvin Palace, on the deal.
The latest international hotel brand to enter the Budapest hotel market is seen as taking advantage of the unique opportunities provided by the conversation of existing buildings in European city centers.
“The hotel market in Budapest shows sustainable growth and offers a lot of potential for our ‘Lean Luxury’ hotel concept, which we believe will fill a gap in the market for stylish, high quality, yet affordable hospitality options,” says Elena Gunther-Jakobs, associate director for development in Northern Europe and CEE at Ruby Hotels. The hotel chain currently has a portfolio of 20 hotels, with a further 12 in the pipeline.
The drug store chain Rossmann says it has commenced the installation of advanced system technologies at its latest logistics hub. The facility has been handed over by the developer, Panattoni Hungary, and owner, OTP Real Estate Investment Fund.
The HUF 20 billion project, one of the most significant build-to-suit agreements in 2023, reached this milestone in just 11 months, according to Panattoni. The 28,000 sqm warehouse in Üllő (just 28 km southeast of Central
Budapest by road), which includes a 4,000 sqm, three-story semi-automated racking system and a 4,000 sqm office building, is due for full completion in the third quarter of this year.
“This project posed a highly complex challenge, and we consider it a remarkable achievement to reach this phase on schedule, allowing Rossmann to commence the installation of its technological systems,” says László Kemenes, managing director of Panattoni Hungary, on the project.
“This collaboration highlights Panattoni’s unique market position: our BTS projects are not only developments but also significant investment transactions, which are particularly valuable in today’s cautious market environment,” he notes.
András Farkas, head of project development at Rossmann Hungary, was equally pleased, noting: “Delivering a project of this magnitude requires precise, coordinated work from all parties involved.”
He adds, “We highly appreciate our partner’s adherence to the deadlines set out in the lease agreement. We engage daily with the general contractor, developer, and landlord to discuss planning and implementation, as our active involvement is essential to the project’s success.”
The selection of an interior contractor for the office space is currently underway, to be followed by the preparation of tender documents for the kitchen’s operational and technological requirements.
The complex is being developed under a forward funding agreement with OTP Real Estate Investment Fund. Operations are expected to begin in early 2026.
Time Out Market Budapest will also open in Corvin Palace this year, creating what it describes as a “food and cultural market that brings the best of the city together under one roof: a curated mix of the best local and homegrown chefs, restaurateurs, drinks and cultural experiences.”
Balogh of Corvin Palace concludes:
“We believe we have found the perfect tenant mix for our heritage building to celebrate its 100th Birthday.”
Forestay Group and Recorde Asset Management Acquire Váci 81 Building
In a strategic partnership with Recorde Asset Management, the Forestay Group has purchased Váci utca 81 for redevelopment into a 200-plus key upper-midscale hotel and apartment hotel.
“This property offers a unique opportunity to integrate cuttingedge technological concepts into a historically significant location. Our vision is to transform obsolete structures into a sustainable high level that meets future market demands,” comments Bálint Botos, managing director of Forestay.
GARY J. MORRELL
Rossmann Logistics Hub Progresses
Artist’s rendering of the Rossmann logistics hub in Üllő, built by Panattoni.
Tim O’Sullivan, head of capital markets at CBRE Hungary, speaking at the agency’s Market Outlook 2025 event.
Trump, TurkStream and Ukraine Factor into
Hungary’s
Russia Sanctions Decision Roundup Crisis
Amidst the ongoing fallout of Ukraine’s decision to refuse any further transit of Russian gas through its territory, following the expiration in January of the deal that had been allowing it, the TurkStream pipeline has become a vital lifeline for Hungary. Minister of Foreign Affairs and Trade Péter Szijjártó says he has been assured it will be protected in calls with foreign energy ministers.
“Crude and natural gas deliveries to Hungary are flowing continuously,” and in record volumes through the TurkStream pipeline, he noted. “So, we have reinforced our commitment to protecting that transit route,” he added, emphasizing that Hungary’s energy was secure.
“Several worrying decisions have been made in our neighborhood that pose challenges to the security of our energy supplies,” Szijjártó said following talks on Jan. 25 with Turkish energy minister Alparslan Bayraktar. These have subsequently made TurkStream the most important pipeline in terms of Hungary’s gas supply, he said.
“Deliveries are currently uninterrupted, but so are physical, political and financial attacks against the pipeline,” Szijjártó added before concluding that he and Bayraktar had agreed that “the attacks against TurkStream are outrageous and unacceptable. We must protect TurkStream at all costs!”
Following talks on Jan. 23 with Alexander Novak, Russia’s deputy PM in charge of energy affairs, Szijjártó said the government could guarantee Hungary’s continued energy security even after Ukrainian restrictions of gas deliveries.
Prime Minister Viktor Orbán spoke with public broadcaster Kossuth Rádió on Jan. 24 about Ukraine’s decision to halt the transit of Russian gas through its territory. The PM said that “though the Ukrainians want to mess with us,” Hungary was able to defend itself by receiving gas via a southern route.
Orbán pointed out that Brussels was considering extending its sanctions on Russia, “and I pulled the brakes and asked the European leaders to understand that this can’t continue,” he said. According to the PM, the sanctions imposed on Russia have cost Hungary EUR 19 billion, or HUF 7.5 trillion, over the last three years. “Hungary can’t be made to pay the price of the sanctions in such a proportion.”
Demanding Guarantees
Consequently, Szijjártó said that Hungary’s vote at the meeting of EU foreign ministers in Brussels to decide on the renewal of sanctions against Russia on Jan. 27 would depend on whether the European Commission would provide guarantees to ensure Hungary’s energy security.
These conditions included protecting Hungary against measures that risked further undermining its energy security, to protect the TurkStream gas pipeline, continued Ukrainian oil transit to Europe, and convincing Ukraine to restart gas deliveries, according to a statement from Hungary’s Ministry of Foreign Affairs and Trade.
“If there are buyers—this is commerce—Russia is interested in continuing this commerce. Our products are not only more competitive than American liquefied gas but also far more advantageous for European buyers.”
Having received these guarantees, Szijjártó said that Hungary’s government decided against vetoing the renewal of European Union sanctions against Russia. Slovakia also welcomed the EC’s decision, adding that gas transit talks with Ukraine could reopen possibilities for shipping gas from Azerbaijan as an alternative. Russia also expressed interest in resuming gas transit through Ukraine,
according to Kremlin spokesman Dmitry Peskov. “If there are buyers— this is commerce—Russia is interested in continuing this commerce,” he said. “Our products are not only more competitive than American liquefied gas but also far more advantageous for European buyers.”
Yet, others felt that Hungary had conceded by putting faith in the EC’s statements. Opposition Tisza Party leader Péter Magyar said that instead of vetoing the extension of EU sanctions against Russia, the government “bravely ran away.”
Having attended meetings in Brussels for seven years, “a council statement [such as those guaranteeing Hungary’s energy security] is worth as much as a [...] coffee in the Brussels cafeteria: nothing,” Magyar quipped.
Meanwhile, others believe a third party may have had more to do with Hungary’s decision not to veto the renewal of sanctions than the EC’s guarantees. Polish Foreign Minister Radosław Sikorski believes Budapest altered its position after U.S. President Donald Trump labeled Russian President Vladimir Putin an aggressor and threatened Moscow with sanctions unless it engaged in peace talks, which had marked Trump’s first definitive statement on Russia’s war against Ukraine. “I think President Trump has helped here,” Sikorski remarked.
NICHOLAS PONGRATZ
In this picture released by the Press Office of the Prime Minister, Prime Minister Viktor Orbán (left) meets NATO Secretary General Mark Rutte in Brussels on Feb.3, 2025. In the foreground is Minister of Foreign Affairs and Trade Péter Szijjártó.
Photo by Vivien Cher Benko
in Brief News
Business Confidence Sinks to 50-month-low in January
The seasonally adjusted Purchasing Managers Index (PMI) stood at 49.8 points in January, down from 50.6 in December, according to the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim) on Feb. 3. The decline pushed the index below the 50-point threshold, indicating contraction in the manufacturing sector. The news underscored an earlier report from international news wire Reuters that Hungarian business confidence fell in January to lows last seen during the COVID-19 pandemic, weighed down by deteriorating prospects in retail and services. The economic thinktank GKI said on Jan. 23 that its regular survey, which focuses primarily on small business expectations, belies the optimism within Prime Minister Viktor Orbán’s cabinet that Hungary’s economy is set for a sharp rebound in 2025 after two years of near-stagnation. Orbán, who faces an election in early 2026, expects his country’s economy to grow by
3.4% this year compared with the European Commission’s 1.8% forecast and GKI’s 2.5% projection issued in December. The think-tank now says that looks somewhat optimistic. GKI’s business confidence indicator dropped to -13.9 in January, easing within the margin of error but still hitting its lowest point since November 2020, as all subcomponents of the index remained in the red, GKI economist Raymund Petz said. The survey showed that consumer sentiment also deteriorated in January, with Hungarians turning more pessimistic about their financial prospects and the outlook for the broader economy over the next 12 months.
Tourism Bank to Launch, Direct U.S. Flights Under Discussion
A bank dedicated to supporting the tourism sector will be established in the fall, Minister of National Economy Márton Nagy announced at an industry gala in Budapest on Feb. 1, according to a statement issued on the ministry’s website. Nagy said the new financial institution will
Factory gate prices in Hungary rose 9% year-on-year in December, from 7.9% in the previous month, data released by the Central Statistical Office (KSH) on Jan. 31 shows. This marked the seventh consecutive month of growth in producer prices and was the sharpest rise in the sequence. According to the Budapest-based statistics agency, the producer price index principally rose because of the weakening of the forint against the euro. Prices increased
process loan applications through the Tourinform office network. He also revealed that discussions are ongoing on introducing direct flights between Budapest and major U.S. cities, emphasizing their significance for economic and tourism-related ties. Additionally, he mentioned potential efforts to relax bilateral visa regulations. Nagy highlighted that a support program for three- and four-star hotels in the capital is also under consideration. He described the tourism industry as a “real engine” of GDP growth, repeating a government target that annual guest numbers reach 20 million by 2030. Nagy had earlier confirmed that Hungary’s tourism sector saw unprecedented growth in 2024, with visitor numbers rising 11% to reach 18 million, while guest nights increased 6%, exceeding 44 million. Accommodation providers generated HUF 1.05 trillion in revenue, marking a 16% increase from the previous year, while catering revenues grew by 11.2% to HUF 2.01 billion.
EU to Fund Teacher Wage Increases in Hungary Until 2030
The European Union will provide HUF 5 million (EUR 12,000) per teacher to support salary increases through 2030, according to a statement issued on Feb. 4 by the European Commission’s Hungarian representation. The EU is allocating EUR 1.8 billion to finance the wage hikes between 2024 and 2030, ensuring that teachers’ salaries remain
for all sub-indices: mining and quarrying by 10.1%, manufacturing by 7.4%, and electricity, gas, steam & air-conditioning supply by 12.6%. Prices for domestic sales increased by 4%, and export prices climbed by 11.5%. On a monthly basis, producer prices rose by 0.3% in December, easing from a 4.3% rise in November. For the full year, factory gate prices rose 1% in 2024, as prices for domestic sales dropped 1.6% while export prices rose by 2.4%.
at 80% of the average graduate wage in Hungary. The statement emphasized that the program’s primary goal is to make the teaching profession more attractive while improving education quality and accessibility. It noted that the wage increase introduced in January has already brought teachers’ salaries to 80% of the average graduate wage. The Hungarian government and the EU have agreed to maintain this level at least until Dec. 31, 2030. Historically, teachers in Hungary earned about 60% of the average graduate wage, compared to 90% across the EU.
Hungary’s Battery Storage Capacity Set for 10-Fold Increase by 2026
Battery storage capacity in Hungary increased from 21.8 MW at the end of 2023 to 55.3 MW at the start of 2025, according to a post on Facebook on Jan. 30 by the Ministry of Energy Affairs and transmission system operator Mavir. That capacity is expected to expand tenfold by the end of 2026, supported by government initiatives. The government has allocated nearly HUF 100 billion for corporate projects aimed at balancing fluctuations in renewable electricity supply and demand. Mavir is leading the country’s most significant battery storage investment to date in Szolnok (100 km east of Budapest by road). At the same time, other companies plan to add approximately 440 MW of new storage capacity this year and in 2026.
Hankook Names Rácalmás Plant Managing Director
Hankook Tire has appointed Ho Taek Lim as the new managing director of its Rácalmás factory, effective Dec. 1, 2024. Lim succeeds Hyung Yun Kim , who retired after leading the facility.
“Having already worked here at the site in the past, I am honored to now take on a new position,” Lim said. “As managing director, I will use my experience of almost three decades to continue the development of production at the Rácalmás plant and thus continue to provide our customers with high-quality, reliable tires,” he promised.
“This constant focus on quality is key to all aspects of our working and production processes. As I have done throughout my career, I want to focus [...]. I am confident that all my colleagues will be partners in this mission.”
Lim joined Hankook Tire in 1995, beginning his career at the company’s R&D center in South Korea, where he specialized in developing tire compounds for trucks and buses. In 2005, he embarked on his first international assignment at Hankook’s Istanbul office, where he trained staff and supported customers on technical and quality issues.
In 2008, he played a pivotal role in implementing the quality system at the Rácalmás factory as part of the technical service team at Hankook’s European Headquarters in NeuIsenburg, Germany.
Over the years, Lim held various management positions focused on technology and quality. In 2018, he became head of the quality management team at Hankook’s Seoul Global Headquarters. He later served as director of the corporate innovation division from 2019 to 2020.
Since 2020, he has held vice president roles, overseeing operations in Seoul and later Daejeon, South Korea. In late 2023, he returned to Hungary as head of manufacturing at the Rácalmás plant before being promoted to managing director.
Kinstellar Strengthens Corporate and M&A Team
Kinstellar has announced the return of László Palócz , a leading M&A lawyer, to its Budapest office as counsel, effective Jan. 20. Palócz spent more than six years at Kinstellar earlier in his career, during which his work on complex corporate M&A transactions and real estate matters earned him a promotion to senior associate.
He brings in-depth expertise in multiple industries, having represented global investors, asset managers, and multinational corporations in landmark projects, including acquisitions, disposals, and lease negotiations.
He has played vital roles in various high-profile M&A transactions, advising on complex legal matters. He also has significant experience managing multijurisdictional and local due diligence processes from inception to final delivery.
“We are delighted to welcome László back to our team. His experience, solution-driven approach, and collegial attitude have always been highly valued by both clients and colleagues.
We are confident that he will contribute to the continued success of our firm,” said Balázs Sepsey, managing partner of Kinstellar Budapest.
“I am thrilled to rejoin Kinstellar and reunite with my former colleagues. This is an incredible opportunity to leverage the knowledge and experience I have gained working on transactions all over Europe as an in-house M&A legal counsel since my departure two years ago while continuing to work on exceptional projects alongside this outstanding team. I look forward to contributing to the firm’s ongoing achievements,” Palócz commented.
Fresh Director at KPMG Legal
Senior lawyer Dalma Ördögh joined KPMG Legal Tóásó Law Firm in early January as a director, strengthening the team in the areas of banking and finance and restructuring legal services.
Ördögh has more than 20 years of experience, having worked for renowned international law firms: 18 months at CMS, eight years at Magic Circle firm Linklaters, and 16 years at its regional spinoff Kinstellar. She has been involved in a number of complex domestic and cross-border transactions. She has also played a significant role in successfully completing large real estate and project finance transactions while also actively contributing to community goals through CSR activities.
“Dalma’s arrival brings new professional perspectives and valuable experience that will contribute to an even higher level of service to our clients,” KPMG Legal said of her appointment.
Smith Appointed Managing Director at MSD Hungary
MSD Hungary, the local affiliate of the global innovative pharmaceutical company MSD, has announced the appointment of Sean R. Smith as its new managing director as of Feb. 1.
The new MD brings more than 23 years of global biopharma leadership experience, looking
to help MSD continue to strengthen its partnerships with stakeholders to support efforts related to prevention, screening, innovative treatment, and healthcare digitalization in Hungary.
The company is set to continue its investment in clinical research and utilize real-world evidence to optimize patient outcomes further, MSD Hungary tells the Budapest Business Journal
“I look forward to making meaningful contributions by continuing MSD’s commitment to Hungary, working with our partners, our customers, and our employees to transform the lives of patients here through bringing our groundbreaking healthcare innovations and solutions to all people in need,” Smith said.
Techwave Hungary Gets Replacement CEO
From Jan. 1, Attila Molnár took over the leadership of Techwave Hungary Zrt. He replaces Péter Fárizs , who has retired.
Molnár holds a degree in economics from the Budapest University of Economics and the University of Passau, specializing in corporate governance. Since 2002, he has been a university lecturer at the Department of Information Management at Szent István University, and since 2020, he has also been a university lecturer at the Institute of Marketing and Communication Sciences at Metropolitan University.
In 2015, he earned a doctoral degree in economics, with research focused on the “Role of Information Management in Corporate Governance.”
Molnár joined Techwave Hungary Zrt. in the early 2000s. Initially, he worked as the head of the company’s sales and marketing activities, later becoming the director of the new business division. The organization deals with SAP ERP systems, including the latest SAP S/4 Hana system, digital marketing, sales, and service systems, analytical and IoT solutions, as well as premium cloud services.
László Palócz WHO’S NEWS Do you know someone on the move? Send information to news@bbj.hu
Hyung Yun Kim
Dalma Ördögh
Attila Molnár
2 Business Hungarian Businesses Must Multiply
Efforts
to Curb Climate Change
Hungarian companies committed to sustainability are making strides in climate action, but experts argue the level of effort remains insufficient to meet global climate goals.
States from), that of limiting the rise in temperatures since the Industrial Revolution to no more than 1.5°C, requires this figure to drop to 2 tonnes.
The survey results indicate that 26% of leading Hungarian companies have set science-based emissions reduction targets aligned with this climate objective. While this figure surpasses the global average, it still falls short of what is required to achieve the necessary reductions.
The urgency of this situation has become even more evident, as 2024, the hottest year on record, marked the first year global warming exceeded the 1.5°C threshold.
Revised Reductions
A survey by the Business Council for Sustainable Development in Hungary (BCSDH), conducted with professional support from Deloitte and just published for the third time, reveals that 66% of Hungarian companies with a sustainability focus have already set specific climate targets.
Additionally, the number of businesses measuring emissions across their entire value chain has doubled, reflecting a significant shift in corporate climate strategies.
The findings of the third “Towards Net Zero” survey indicate substantial progress in emissions data collection, both in terms of direct corporate operations and purchased energy consumption. Furthermore, companies have begun expanding emissions tracking to their supply chains, a development principally attributed to tightening European Union regulations.
However, despite these positive trends, the survey highlights a substantial gap between commitments and concrete action. While 91% of businesses report experiencing the effects of climate change, only 16% have implemented climate adaptation action plans.
According to Irén Márta, managing director of BCSDH, “the need for adaptation is just as pressing as emission reduction. The transformation must go beyond goal setting. Systemic changes and a significant increase in efforts are required in both areas,” she emphasized at the event presenting the survey results.
Hungary’s per capita emissions currently stand at 5.6
tonnes per year.
In contrast, the goal of the Paris Agreement (which newly returned President Donald Trump has just withdrawn the United
“Hungary has already reduced its emissions by 43% between 1990 and 2023, reaching its original 2030 emissions reduction target ahead of schedule,” said Barbara Botos, climate ambassador at the Ministry of Energy. “As a result, the country has now committed to a 50% emissions reduction by the early 2030s under its revised National Energy and Climate Plan.” There was also some good global news, she noted.
“Global emissions should peak now and start a steady decline. To keep warming below 1.5 degrees by the end of the century, we must reach net-zero emissions worldwide by 2050 at the latest.” Botos emphasized that “companies must go beyond pledges and implement practical measures to achieve net-zero goals.”
Among the key strategies being deployed, the increased use of renewable energy sources and energy efficiency improvements stand out as the most prominent. Businesses can also access domestic incentive programs and funding opportunities to support their sustainability efforts.
The BCSDH survey highlights the primary pathways Hungarian businesses pursue to reduce emissions. A significant portion of companies aim to achieve
emissions reductions by enhancing energy efficiencies. Many plan to increase the use of renewable energy sources to minimize their environmental impact. Additionally, numerous firms are focusing on circular economy solutions within their value chains to improve sustainability.
Although these numbers reflect a growing awareness of corporate climate responsibilities, experts warn that substantial challenges remain in implementing effective climate action.
Flóra Borek, senior manager at Deloitte’s sustainability and climate change advisory team, pointed out that “68% of Hungarian companies are already measuring emissions from their operations and purchased energy. More notably,
43%
of respondents are tracking greenhouse gas emissions data across their entire value chain, a significant improvement from 20% in the 2022 survey,” she said.
“This increase demonstrates the impact of stricter regulations and heightened investor expectations,” Borek explained. “Businesses are increasingly expected to move beyond internal operations and integrate comprehensive emissions management strategies across their entire supply chains.”
Transportation is a critical area in the push for corporate decarbonization. Fleet management companies, such as Ayvens (formerly ALD Automotive/ LeasePlan), play a key role in supporting businesses in reducing emissions from corporate mobility.
Going Beyond
“Sustainability efforts must go beyond simply transitioning to electric vehicles. Beyond our own sustainability efforts, we focus heavily on raising awareness among our clients and developing sustainable mobility solutions for them,”
Tímea Pesti, CEO of Ayvens, highlighted.
“Achieving carbon-conscious operations requires a fundamental shift in how businesses approach fleet management. Instead of viewing corporate vehicles as status symbols or business perks, companies must recognize them as practical tools that serve real-world needs. This shift requires a new way of thinking at the corporate level,” Pesti emphasized.
Ayvens’ commitment to sustainability has been recognized internationally, as the company was awarded the EcoVadis Platinum certification in 2024, placing it among the top 1%
of globally assessed businesses in terms of sustainability performance.
The BCSDH survey results underline that Hungarian businesses face mounting pressure to accelerate their sustainability efforts. This pressure comes not only from domestic regulations but also from international parent companies and key export markets, particularly Germany, where climate-conscious policies are shaping supply chain expectations.
With European businesses enforcing strict sustainability targets on their suppliers, Hungarian companies must align with these evolving standards to maintain global competitiveness.
Although some Hungarian firms have made significant strides toward fullscale sustainability transformations, the broader corporate landscape still lags. A major issue is that many companies have not yet backed up their emissions reduction targets with precise measurement frameworks, particularly regarding value chain emissions.
Experts agree that increasing regulatory scrutiny is inevitable.
The European Union’s Corporate Sustainability Reporting Directive is set to require businesses to provide more comprehensive climate disclosures, meaning “companies that fail to act may face financial penalties and lose investor confidence,” the survey finds.
As climate-related risks continue to rise, “companies that do not adapt risk significant reputational and financial damage.” While leading enterprises are already integrating sustainability principles into their longterm strategies, a broader and more aggressive acceleration of corporate climate action is needed to ensure Hungary meets its commitments and remains competitive globally.
GERGELY HERPAI
Barbara Botos, climate ambassador at the Ministry of Energy.
Flóra Borek, senior manager at Deloitte’s sustainability and climate change advisory team.
Tímea Pesti, CEO of Ayvens.
Cells and the Art of Packaging
How does tidy storage lead to better medicine?
Epigenetics is becoming an ever more important field of research, focusing not on DNA’s coding sequence itself but on the external factors that control when and how these genes are expressed.
which cells transcribe into RNA and then translate into proteins. Proteins, in turn, define the nature of all living organisms, influencing everything from heart structure to venom glands, nails, horns, or suction cups.
A recent international study published in Nature Communications examined how cells utilize the same histone variant in both the activation and suppression of gene expression, making a fascinating discovery with significant Hungarian contributions. Researchers from the University of Debrecen, Eötvös Loránd University, and the HCEMMBRC Single-Cell Omics Advanced Core Facility in Szeged, headed by Dr. Zsuzsanna Darula, participated in this groundbreaking work.
Genetics as a science is surprisingly young: the DNA molecule’s iconic double-helix structure was first described only in 1953. This pivotal revelation ushered in decades of intensive research into how DNA functions and is regulated, ultimately leading, by the 1970s and ’80s, to advances with tangible impacts, from insulin production and forensic analyses to vaccine development. This era kicked off the so-called biotechnology revolution. Today, schoolchildren learn that DNA encodes genetic information in genes,
However, these processes only make sense when considered alongside gene regulation. Molecular mechanisms ensure that the right genes turn on or off at precisely the right times. To transform a fertilized egg into a newborn infant, for instance, countless genes must be activated or silenced with precise timing.
We know that such regulation involves elements beyond the DNA’s coding sequence. This layer of control, epigenetics, can dramatically alter outcomes. In a honeybee colony, both queen and worker bees develop from the same genetic blueprint. The difference lies in how these genes are packaged and managed through epigenetic regulation. A single genome can thus give rise to strikingly different organisms.
The Question of Control
This prompts the question: how does the cell control gene expression so effectively? One key factor is that DNA is not some “disembodied” code. It is a large molecule with length, width, and spatial constraints. It can coil, bend, or even break. Certain molecules can bind to it, making some regions inaccessible.
The recent study emerging through the collaboration of Hungarian laboratories and their foreign partners shed light on the enigmatic question of how the same epigenetic factor, a variant histone, can both increase and decrease the stability of the histonecontaining particles the DNA is wound around, depending on their location in the genome.
Every human cell contains nearly two meters of DNA. Storing it efficiently is no small feat. Cells solve this by using assemblies of histone proteins called nucleosomes. Each nucleosome is made up of eight histone molecules fitting together like puzzle pieces to form a spool-like structure around which the DNA winds.
The nucleosomes line up like beads on a string, forming a long and wellorganized histone-DNA complex called chromatin, compacting the genetic material to save space. The coin has two sides, though: DNA so stored is inaccessible. Genes stored this way remain “silent.”
Modifications of the histones and the DNA, and the presence or absence of variant histones in the different nucleosomes, regulate their stability and, simultaneously, the accessibility of the DNA wound around them. Before cell division, the entire histoneDNA content is tightly packed into the familiar chromosome shapes, facilitating proper division.
The Twist in the Tail
The researchers have found that a small “tail” region of a particular variant histone, H2A.Z, is key to controlling the stability of the nucleosomes containing this histone. This nine amino acid-long “tail,” named C9, critically influences whether histone holds onto the DNA or lets it unwind, making genes accessible again.
Even more exciting, the team discovered that removing C9 or reintroducing it can alter not only nucleosome behavior but the entire nuclear architecture. Because these manipulations are possible in living cells, this insight opens the door to potential medical applications. By controlling the cell’s DNA packing and unpacking mechanisms, we might one day fine-tune gene expression patterns as a therapeutic strategy. This could be relevant for conditions linked to improper gene expression, such as cancer, autoimmune diseases, or even the aging process itself.
A crucial factor enabling the identification and measurement of changes in these histone proteins was the work carried out at the HCEMMBRC Single-Cell Omics Advanced Core Facility. Researchers there used specific enzymes to break down the proteins of chromatin samples derived from cells with full-length and tail-less H2A.Z into peptides, followed by mass spectrometric analysis. Matching the data against a database allowed them to pinpoint which proteins and subunits were present.
This research marks a step toward understanding and potentially harnessing the cell’s intricate machinery for gene regulation. If DNA packing can be carefully managed, it may, one day, offer a new avenue for disease treatment, ushering in a future where controlling gene expression at will is not just the stuff of theory but a concrete clinical tool.
About HCEMM
The Hungarian Center of Excellence for Molecular Medicine (HCEMM) is a distributed institute whose scientists develop advanced diagnostics and treatment options supporting healthy aging. Currently, the HCEMM program is funded by an H2020 Teaming Grant, where Semmelweis University, the University of Szeged and the HUN - REN Biological Research Center, Szeged, cooperate with their advanced partner, the European Molecular Biology Laboratory (EMBL, headquartered in Heidelberg, Germany). The support of the Hungarian government is also essential for the operation of the HCEMM, primarily through the Thematic Excellence Program and the National Laboratories Program. HCEMM works at the interface of academic and industrial research on topics related to Translational Medicine. The goal is to improve the quality of life for an aging Hungarian population while at the same time lowering the cost of healthcare provision through novel applications in the field of molecular medicine. Coordination of the various activities is managed by HCEMM Nonprofit Kft., headquartered in Szeged, Hungary.
Dr. Zsuzsanna Darula, HCEMM-BRC SingleCell Omics Advanced Core Facility Head.
Domestic Players ‘Dominate’ Real Estate in 2024, Will International Money Follow in 2025?
Hungary saw real estate investments from domestic and international shareholders in 2024, with handovers in office, retail, and industrial fields. Predicting more significant developments for the upcoming year, consultants from Colliers Hungary discuss what 2025 will bring to the domestic real estate market.
These companies were also the three most significant contributors to Hungary’s FDI in the past five years, totaling nearly EUR 40 billion. CATL provided the largest investment of
EUR 7.4 bln,
with BYD next at EUR 5 bln and BMW EUR 2 bln.
Regarding the industrial market, 2024 saw a significant increase in net absorption. There were 14 main industrial completions of more than 10,000 sqm last year, with the CTPark Szigetszentmiklós covering the largest territory at 120,880 sqm. Only five of those 14 completions are located within Budapest, while the rest were spread across the countryside.
“In the past year, developers became hesitant with large projects; vacancy rates were high, and tenants were harder to find compared to previous record years, so they restricted developments within the Budapest area. I think this caution will become a tendency in the near future. They won’t jump into purely speculative 30,000-60,000 sqm developments,” predicted Tamás Beck, Colliers Hungary’s head of industrial agency.
European countries, especially Germany, to refocus on Hungary,” he adds. “Asian investors anticipate continuing their activity in the upcoming years, and the outcome of these predictions will be observed in late 2025 through the beginning of 2026.”
Office Market
Although Hungarian GDP was lower than expected in 2024, Kristóf Tóth, head of research at Colliers Hungary, is optimistic about economic growth and overall productivity in the upcoming years.
“In the beginning of 2024, a 2-3% GDP growth was expected among professionals; however, this number turned out closer to 0.5% by the end of the year,” he notes. “For 2025, we expect about 2-3% in GDP growth and the same for 2026.”
This predicted boost in GDP is primarily due to international companies with Hungarian locations, whose investments are expected to start yielding significant results this year.
These mostly center around electric vehicles and EV parts production (especially batteries) by companies such as BMW and CATL in Debrecen (233 km east of Budapest by road) and BYD in Szeged (176 km southeast).
Industrial Pipeline
There is also an extensive industrial pipeline until Q2 2026, covering a combined 587,300 sqm, 43% pre-leased. The size of the developments under construction for the Budapest area is 373,844 sqm, with 22% pre-leased, while those in the countryside represent 213,456 sqm, 38% of which is preleased. The largest single development is expected to be the HelloParks Alsónémedi warehouse (just 24 km southeast of Central Budapest) at 59,697 sqm.
“Hungarian investors are both stable and continue to dominate at the moment,” says András Dallos, head of valuation services at Colliers Hungary, referring to the fact that nearly 78% of all domestic real estatebased investments were made by Hungarian entities.
“Solid yields [from investments] are expected to encourage Western
The office market will see a drop in completions; only two significant speculative developments of more than 20,000 sqm are in the pipeline. In terms of square meters, the largest office building scheduled to be unveiled this year will be the Centerpoint III project by developer GTC, located near the Árpád Göncz City Center. The building will cover 37,208 sqm, with an expected handover in Q2 2025.
The total market speculative office vacancy rate was projected at 17.5%
in the last quarter of 2024, with only a few areas (Central Pest, Non-Central Pest and periphery locations) surpassing the average. All areas of Buda, as well as ecofriendly and newly built buildings, had office vacancy rates lower than the average.
“There was a double surge of why tenants started to move into green buildings,” explained Miklós Ecsődi, head of occupier services at Colliers.
“The first reason was an internal factor; ESG requirements regarding the type of office occupied by the organizations became an increasingly strong factor in the past three or four years, [...] while the second reason was the energy crisis in Hungary. At the time in 2022 when electric energy prices rose 10-fold and gas energy rose 16-fold, a chance to save even 20% on energy was a good enough reason to move into newer, green buildings. Since then, although a market correction has occurred, prices are not expected to return to pre-2022 level even in the mid-term,” he details.
Retail Rising
Head of valuation services Dallos also notes: “The sentiment towards retail spaces is taking a positive turn; therefore, hotels, retail locations, and strip malls are becoming more attractive investments once again.”
In terms of location, demand within the retail industry is centered around Váci utca and Fashion Street, with “virtually no vacancy” and tenants renewing leasing contracts “two to three years prior to current lease expirations.”
Colliers Hungary’s head of retail agency, Anita Csörgő, strengthens the idea that the retail sector is on the rise. “No one is leaving Váci utca,” she says.
“The foot traffic from customers is highest there, even higher than in the Westend Shopping Center, so companies are able to produce more income at a smaller location,” she adds.
Adjacent streets, such as Petőfi Sándor utca, Bécsi utca and Fehérhajó utca, are also experiencing lower vacancies and increasing traffic. According to Csörgő, the “biggest change last year was observed on Andrássy utca. There were a lot of vacancies with many buildings under renovation; a lot of new contracts were signed this month for those locations,” she explains.
There are also plans to expand and refurbish multiple shopping centers and retail locations around the city, with expected handovers starting in 2025 and lasting until late 2028.
LUCA ALBERT
Tamás Beck, director, head of industrial agency
Anita Csörgő, director, head of retail agency
András Dallos, director, head of valuation and advisory services
Miklós Ecsődi, director, head of occupier services
Kristóf Tóth, associate director, head of research
Varga to Replace Matolcsy at the MNB in March, but What Will Change?
One of the most significant pieces of news from the world of Hungarian finance at the end of last year was the government’s nomination for the next governor of the National Bank of Hungary (MNB). What will the new leadership bring?
Until 10 years ago, the first man of monetary policy was a broadly independent person without ties (at least formally) to any political party. That changed in 2013 when the outgoing MNB governor, András Simor (appointed by the then-ruling Socialist party in 2007, he had what could best be described as a “problematic” relationship with the ruling Fidesz party, which returned to power in 2010), was replaced by the Minister of National Economy in the Orbán government, György Matolcsy.
A close ally of Viktor Orbán (who once described the minister as his “right hand”), Matolcsy gradually distanced himself from the prime minister and the government he once was part of, openly criticizing the cabinet’s economic and fiscal policy.
Matolcsy’s second mandate will end in March, and, by law, he is prevented from having a third term, but it seems probable Orbán would have blocked such a move anyway by all means possible. Instead, his position will be taken by another member of the Orbán government, Minister of Finance Mihály Varga, among the most loyal politicians to Viktor Orbán.
“I accept the honorable request of the Prime Minister with gratitude,” Varga posted after the nomination was made public.
The MNB published a very detailed Productivity Report in December that, again, was not too supportive of cabinet measures. The report argues that the government’s policy of fueling GDP growth through heavy subsidies for the automotive and electric vehicle battery industries had failed.
More Efficient Production
The added value generated by these sectors is well behind other services and innovative industries; therefore, subsidies should be channeled towards more efficient production, according to the MNB. High value-added areas include the financial services, sciences and infocommunication, the central bank says.
The MNB sees things differently from the executive branch, not only regarding the recent past but also in its forecasts.
Finance Matters
A monthly look at financial issues in Hungary and the region
How would you describe the current economic situation in your country?
Source: Ipsos Global Advisor
While the government expects inflation of 3.2% this year, the MNB considers 4% more realistic, deputy governor Barnabás Virág said in an interview for 24.hu. The official MNB target for inflation is 2-4%. For now, it is not looking too bright; while the average for 2024 was 3.7%, the figure for December was 4.6% year on year, up from 3.7% in November.
While the principal driver for the acceleration of inflation was the increase in food and fuel prices, other changes will probably contribute to the January rate. The government prohibited raising the bank account fees until the end of 2024, which means that, from Jan. 1, banks are free to do so and to charge the new and higher transaction fees imposed by the government.
Moreover, banks are allowed to raise fees with the inflation rate. Not that they are very much in need of doing that. In a report released in December, in nine months, banks reached a profit of
HUF 1.419 trillion,
representing earnings only from their branches in Hungary. This amount is 25% higher than in 2023, which was itself a record high.
While that is excellent news for banks and their shareholders, families need to handle growing fees related to their bank accounts. According to a survey conducted by CIB Bank, the members of one-third of Hungarian families have accounts at different banks. Their expenses related to bank accounts are generally below HUF 50,000 per year, but in some cases, they can amount to HUF 150,000 or more.
Family members make bank payments to each other, which, combined with having accounts at different banks, can result in high costs. Therefore, it is probably not surprising that 46% of the respondents would migrate to another bank to reduce costs, while one-third indicated that better products or services would make them consider moving to another bank.
Priority Dilema
The government is now faced with the dilemma of what should be the priority: GDP growth or inflation, and nor should we forget the budget deficit. Speaking in December before his parliamentary economy committee hearing as candidate for the governorship of the MNB, Varga said that he would be committed to reaching the inflation target of 2-4%.
This commitment “is a clear and unambiguous message that helps anchor the expectations of consumers, businesses, and financial market participants,” Varga said. He added that, under his leadership, the MNB would respond decisively to risks threatening the financial transmission system, financial stability and sustainable economic development.
He said he would also strongly emphasize the management discipline of the MNB, ensuring that the central bank operates transparently and professionally. The basis for economic growth in 2025 is rising consumption, expanding retail lending, growing construction order stock, and new manufacturing capacities coming online. He said that monetary policy can best contribute to economic
expansion by maintaining persistently low inflation and financial market stability. Rising consumption may be problematic, though. An Ipsos survey called “What Worries the World 2024” published recently indicates that Hungary is among the countries with the highest percentage of the population, at some
80%,
thinking the country is heading in the wrong direction. Only in Germany, South Korea, Peru and France were the population more concerned. Hungarians were equally concerned about the current economic situation: 84% ranked it bad, just 16% good. Only in Japan, South Korea and France were the figures worse.
Hungarians are most worried about the healthcare system, corruption, poverty, inflation and unemployment. Given this, it is hard to believe they will start spending massively in 2025. While Varga did not mention it, the exchange rate fluctuation is also an issue in the Hungarian economy, raising prices for imported goods and fueling inflation. If we compare now to the period before February 2022, the Hungarian forint has depreciated by 15.6% to the euro, 26.8% to the U.S. dollar, and 14.9% to the Romanian leu. While in January 2010 one euro cost around HUF 270, now the rate is around HUF 410. Asked if the euro rate could ever return below HUF 300, Zoltán Varga, a senior analyst at Equilor Investment, told index.hu that such an appreciation of the forint would be utterly unrealistic. By the end of this year, Varga expects the euro rate to be around HUF 420.
BALÁZS BARABÁS
Hungarians Struggle with Sleep Quality, Jysk Study Finds
Hungarians face significant challenges regarding sleep quality, with a large portion of the population struggling to get sufficient rest or waking up feeling exhausted. A new representative survey conducted by Danish household goods retailer Jysk, in partnership with the Hungarian Sleep Association, sheds light on the country’s bedtime habits and the potential factors contributing to widespread issues.
and slow reaction times. In the long run, chronic sleep deprivation can lead to severe health complications, including cardiovascular issues, obesity, weakened immune function, and mental health problems such as anxiety and depression.
During winter, many people feel more fatigued, often attributing their tiredness to a lack of sunlight and the seasonal blues. However, the Jysk study suggests that sleep disturbances may have more to do with poor sleeping conditions than external environmental factors.
The thickness and firmness of a mattress play a crucial role in providing adequate support and distributing body weight evenly to relieve pressure points. Memory foam mattresses are particularly beneficial as they adapt to body shape and retain heat, contributing to a more comfortable sleeping environment. Some mattresses are even designed to help regulate sleeping temperature, which can be essential for falling asleep quickly and staying asleep through the night.
from thinner, ergonomically shaped pillows to maintain posture, while stomach sleepers should opt for lower, softer pillows to prevent neck strain.
Among pillow preferences, there were no clear favorites: 23% of respondents preferred down-filled pillows, 21% chose synthetic fiber pillows, and 20% opted for memory foam pillows.
According to the research, half of the respondents believe they sleep enough, yet only 39% report waking up feeling rested. Meanwhile, half of those surveyed feel they do not get adequate sleep, and even more individuals frequently wake up fatigued.
On average, respondents identified two sleep-related problems: waking during the night and difficulty falling asleep.
The survey found that 57% of Hungarians wake up regularly throughout the night, while 44% have trouble falling asleep. Additionally, 29% reported snoring, a common condition that can disrupt sleep cycles and affect sleep quality.
Morning fatigue is also a significant concern, with 39% of respondents stating they struggle to get out of bed, while half of those surveyed experience joint pain upon waking. Alarmingly, only
12% of respondents wake up entirely free of any complaints.
The findings of the Jysk study highlight that poor sleep is not merely an inconvenience but a significant factor affecting overall well-being. Sleep quality plays a crucial role in various aspects of life, including work performance, concentration, and physical and mental health.
A broad range of factors influence sleep quality, including stress, exposure to artificial light, breathing difficulties, and inadequate sleeping surfaces. One of the key contributors to poor sleep is an unsuitable mattress, which can be either too soft or too firm, leading to insufficient spinal support.
“When selecting a mattress, the most important considerations are comfort and proper support. A good mattress should promote restful sleep while ensuring healthy spinal alignment,” says György G. Németh, president of the Hungarian Sleep Association.
The survey found that the most popular mattress types among Hungarians are foam mattresses (36%) and spring mattresses (24%). However, a significant portion of the population (24%) sleeps on a sofa bed or an extendable couch, which may not provide the necessary support for long-term, healthy sleep.
Interestingly, only a small fraction of the population prefers a soft mattress. The vast majority of Hungarians, at 88%,
sleep on medium-firm, firm, or very firm mattresses. However, firmness is not a one-size-fits-all solution, as body weight, sleeping position, and body structure are all influencing factors.
For those who have found their perfect mattress, protecting it is equally important. A mattress protector can help extend the lifespan of a mattress by shielding it from dust, dirt, and moisture. When it comes to replacing mattresses, Hungarian consumers are highly divided. One-third of respondents have never replaced their mattress, while another one-third only do so once every 10 years or more. Some 36% say they change their mattress in less than 10 years.
Unlike many other consumer goods, mattresses are often considered a longterm investment, with purchasing decisions driven by a combination of price-value ratio (47%), comfort (45%), firmness (34%), and size (32%). While cost is an important factor, comfort and ergonomic support are nearly as critical in the decision-making process.
Accessorizing Well
Beyond selecting the right mattress, sleep accessories such as pillows, blankets, and mattress protectors play a significant role in sleep quality. These accessories directly impact body support and overall comfort, both essential for restorative sleep.
The Jysk study found that 67% of Hungarians sleep on their side, 16% on their stomach, and 10% on their back. Because different sleeping positions require different types of pillows, choosing the right one is essential. A thicker pillow is recommended for side sleepers to provide proper neck and spine alignment. Back sleepers benefit
Duvet preferences also vary, with down (23%), synthetic fiber (21%), and wool (16%) being the most popular choices among Hungarian consumers. These options allow individuals to select the most comfortable and temperature-appropriate bedding for their personal needs.
As part of its sustainability efforts, Jysk has committed to using only sustainably sourced cotton in all its textile products, including bed linens, towels, blankets, and pillows.
Despite the importance of sleep quality, many people remain dissatisfied with their sleeping conditions. The survey revealed that 20% of respondents are unhappy with their bed or mattress, while 30% believe there is room for improvement. There is better news for the remaining 50%, who feel their sleep environment fully meets their needs. These findings suggest that conscious decision-making and expert guidance are essential for improving sleep quality. Jysk’s retail stores offer specialized consultations to help customers find the best sleep products tailored to their needs, earning it the “Sleep-friendly Company” title from the Hungarian Sleep Association. “At Jysk, we prioritize good sleep. That’s why all our stores have dedicated mattress studios where trained staff assist customers in selecting the best mattresses, pillows, blankets, and mattress protectors,” says Krisztina Szilvási, the retailer’s communications manager. “These products play an essential role in ensuring restful sleep, regardless of the season.”
GERGELY HERPAI
From left: Dr. Katalin Szalay, neurologist; György G. Németh, president of the Hungarian Sleep Association; and Krisztina Szilvási, Jysk’s communications manager. The sleep survey results were presented in a Jysk showroom.
Photo by Gergely Herpai / BBJ
AI Proving to be Both a Science and an Art
Recent news about the California wildfires must have contributed to what psychologists describe as climate anxiety, the sense of fear, worry or tension about how climate change will affect our lives. Artificial intelligence will probably also significantly shape that future, leading to a new kind of stress: AI anxiety.
Biological therapy, which was administered to the late U.S. President Jimmy Carter, has a high cost, while chemotherapy is much cheaper. It also has many side effects, but with optimization and customization, Eigner said there are opportunities for much better efficiencies.
Modern-day philosophers such as Yuval Noah Harari have warned, “Never summon a power you can’t control” (The Guardian, August 24, 2024). But other researchers, like György Eigner, dean of Óbuda University, say they can’t wait for AI to overtake human interventions in certain areas.
Presentations by Eigner and other scientists were recently hosted by the John von Neumann Computer Society (NJSzT) and Óbuda University during the recent Hungarian Computer Science Day in Budapest.
In his talk, Eigner shared some of the research areas and results achieved by the University Research and Innovation Center at his university. Cancer treatment can be broken down into two fields: biological therapy and chemotherapy.
Several experiments have shown that the protocols used until now are mostly outdated, and better results can be achieved with fewer substances administered. Laboratory mice treated with the new protocols lived much longer, for example.
Avoid Overregulation
Artificial intelligence can significantly improve medical research; the problem is that the field is overregulated in the European Union, Eigner said.
Diagnostics is an area where AI could greatly help, and the United States has already approved many technologies. In the EU, things are different. There are far fewer approved AI-based diagnostic systems, and those that are allowed need tremendous documentation. Bureaucracy is a significant
The World Relies Upon Hungarian Expertise
What are Hungary’s possibilities in a technology market so heavily dominated by the United States? “The Hungarian brain has always contributed and will always be able to contribute to global scientific development. It is not only a matter of money,” insisted Levente Kovács, the president of NJSzT.
“The Hungarian knowledge base, academic networks, scientific cooperation and research all confirm that the world relies on Hungarian expertise. So, regional or world leadership represents an advantage only in as much as they provide better infrastructure for professional development and cooperation,” he added.
It has developed over several years; it was already clear by 2020 that artificial intelligence is an area that will greatly impact science.
AI Ambassadors
Such a catalyzing program needs a highly trained team that can stir and fuel a change in information regarding the opportunities given by artificial intelligence. This is done within AI4Science by a network of “ambassadors” who cover an extensive range of sciences.
However, just talking about AI is not enough on its own, so technological infrastructure is also made available for researchers, such as a machine learning environment based on GPU processors and cloud infrastructure. More than 300 research projects have been funded, and one of the successes achieved was the “Autoencoderbased architecture for parameter estimation of a tumor model” program, published last year, Lovas said.
impediment to introducing such systems in Europe. This is counterproductive, Eigner said.
In the United States, AI is used in diagnostics so much that, in some cases, the human doctor is completely eliminated. Artificial intelligence significantly reduces false positive results, can identify problems much better based on a large number of cases and, not least, is not affected by fatigue, a bad mood, or any other human factor.
Artificial intelligence is the future of medicine and is very much awaited. So, in this area at least, we are not talking about AI anxiety so much as AI impatience, Eigner added.
But AI is not only a tool for better technological solutions, but also for scientific cooperation, Róbert Lovas, vice president of the highperformance computing department at NJSzT, said. The state-funded Hungarian Research Network (HunRen) launched the AI4Science program last year to assist researchers in gaining a better understanding of AI and the opportunities it offers.
More specifically, it focuses on four areas:
Inspiration: What can AI be used for, and where is it currently applied?
Education: How should AI be used, and where can skills be developed?
Consultation: Who can be consulted regarding AI-related research ideas or planning questions?
Technology: What technologies can be used in research, both in terms of AI applications and computational capacities?
The aim is “to make researchers more efficient, to integrate them better into international cooperation and to be able to use the latest technologies,” Lovas said. The idea is not new.
Not everything about AI is related to science, as Ruzsa Dénes says. The computer art department at NJSzT researches digital, new media and AI art. The latter refers to creations where computers are present not just as an instrument but as an active and creative part of the artistic process.
While many are familiar with the spectacular representations of fractals, computer art is far from limited to this. It can include the visual analysis of spaces, land art creations, alterations of photographs with AI, virtual representations of persons pictured in old family photos, the use of light in sculptures and even the use of physical objects, like recycled motherboards, processors, hard disk drives or prints on textiles.
BALÁZS BARABÁS
György Eigner, dean of Óbuda University.
Róbert Lovas, vice president of the high-performance computing department at NJSzT.
Photo by Judit Sárai / Óbuda University
Photo by Judit Sárai / Óbuda University
Electronic Manufacturing in Hungary: Stakeholders Stand Their Ground Despite Harsh Conditions
Intensifying competition from the East, labor cost pressures from within, and a rapidly changing supply chain picture are just a few of the issues the electronics manufacturing sector needs to tackle head-on. Hungarian stakeholders, however, are standing their ground.
Sentiment in the electronics industry isanything but rosy. The December 2024 global survey of the trade association IPC found that the new orders index had remained in contraction for the fourth consecutive month, demand had weakened, and shipment and capacity utilization had both slipped lower.
Most firms report ongoing increases in labor and material costs, and the impact of potential tariffs represents
at least a moderate concern for nearly seven out of 10 companies.
But to what extent is that sentiment shared in the Hungarian landscape? Geopolitical unpredictability is clearly an issue when it comes to business planning at Z Elektronika. As development manager Gyula Ulrich explains to the Budapest Business Journal, the sluggish growth of the German economy has had an obvious ripple effect on its operations.
“We can’t influence material costs, unlike the large multinational enterprises that trade in raw materials, as we deal with assembly and we offer engineering services,” he says. However, this combination gives them an edge in times like these. “We never wanted to be the cheapest; the idea was to attract clients based on our capabilities and the complexity of our services.”
Gábor Ozsváth, sales director of Elas Kft., identifies another hot topic: labor cost increases: “It’s an issue all across Europe, with certain non-EU countries still offering ultra-lowcost environments,” he notes. What is more Hungary-specific, though, is that employees here want to see the extreme impact of inflation be fully compensated, and desired raises are much higher.
Manufacturing Moving Eastward
A leading domestic distributor of electronics manufacturing equipment in the country, one major trend identified by Elas is that a substantial chunk of manufacturing volume is being shifted to the Far East.
“We can’t see just yet what locally made products there would remain demand in the longer run,” Ozsváth says.
Given that electronics is sneaking into pretty much everything, many companies with no previous experience have jumped into manufacturing. However, these new projects tend to have limited volume.
“It’s unclear how many of those products could be scaled up to numbers that are standard in automotive,” the Elas expert notes, adding that another phenomenon is that production capacities now primarily aim to cover local needs.
Supply chains are not immune to such developments. They are adapting rapidly, with a growing number of producers from the East lining up.
In electronics manufacturing services, Asian newcomers can grow more
Are Tariffs Their Last Concern?
Tariffs certainly have the potential to make executives reconsider their corporate strategy, especially after the world learned that, in President Donald Trump’s dictionary, it is “the most beautiful word ever.” Gábor Ozsváth, sales director of Elas Kft., believes that since those eventual tariffs would concern exports to the United States, it won't affect prices of equipment distributed by Elas given the company is active in Hungary and Serbia. Such actions typically trigger countermeasures, though, that are likely to stir up the market. As a contract manufacturer, Z Elektronika wouldn’t count on a significant impact since tariffs will be integrated into the final products’ price, and its work phase would not be concerned. Furthermore, according to development manager Gyula Ulrich, if the Americans need something badly that we produce, we won't be able to cut prices further, resulting in a "take it or leave it" situation.
quickly because they are new to the game. The market won’t get bigger, however; only the number of competitors will expand. Those fresh rivals will, by necessity, take market share away from local stakeholders, Ozsváth observes.
Price Wars
The pandemic forced companies to reconsider their supply chain routes and lengths, and, as a consequence, nearshoring is ongoing. Ulrich stresses, though, that there is fierce competition for these returning capacities, with suppliers driven into a price bidding war.
Given their greater market maturity, Hungarian companies are more expensive than their Serbian or Bulgarian counterparts, although they have a slight cost advantage compared to Polish firms. Z Elektronika is counting on the power of branding, not just prices.
The cut-throat race in electronics manufacturing keeps pushing companies to their limits to find new ways of building resilience. The latter can be attributed partly to a large client pool at Z Elektronika, which might be tough to handle but pays off in a sluggish market. Low exposure to automotive also helps. Development manager Gyula Ulrich sees enormous potential in productivity increases.
“You need to make your production measurable, which requires data collection. The same tech is up for grabs for all, so you can gain an edge only in capacity utilization and cutting the time to switch from one product to another,” he says.
Gábor Ozsváth, sales director of Elas Kft., says his firm is building on its training programs on top of its core activity. The company is a dominant
knowledge hub, which has helped it overcome obstacles multiple times.
“We realized that giving our partners a hand to solve their problems enhances their loyalty, which is bound to materialize in more purchases. We mustn’t give up our faith in that,” Ozsváth says.
The firm also showcases its portfolio at regional trade fairs like InnoElectro in Budapest (the 2025 edition will take place from April 8-10). It says a presence at such events has never been more critical.
“You need to sell something different, something unique that includes design or redesign, for instance. That’s how you stand out,” Ulrich says.
Ozsváth complains of the unfair advantage Chinese firms enjoy; they can offer equipment at unrealistic prices thanks to lavish state subsidies. But he also has longer-term concerns.
“We just never learn from previous damage. Once things are back to normal, the cost issue pushes to the forefront again, businesses search for the cheapest solution, and they might end up with a high-level exposure, like before,” he concludes.
LEVENTE HÖRÖMPÖLI-TÓTH
Gyula Ulrich, development manager at Z Elektronika.
Gábor Ozsváth, sales director of Elas Kft.
3 Special Report
SSC/BSC
Hungarian BSC Sector: AI-readiness Wanted
The widespread adoption of automation is a natural evolutionary step in the business services sector, which is known for keeping pace with technological advancements. However, humans remain crucial to long-term success, as ABSL Hungary President István Lenk explains.
LEVENTE HÖRÖMPÖLI-TÓTH
The Hungarian economy has seen better days, given that 2024 witnessed a technical recession for the second time in three years. The business services sector is one of the few with a reputation for being crisis-proof, as evidenced by its uninterrupted growth even during the darkest hours of the pandemic.
The latest survey of the sector by the Hungarian Investment Promotion Agency underscores that trend, with two-thirds of respondents playing with further expansion, defying the grim circumstances. Other experts, however, have expressed skepticism about the level of optimism, claiming the glory days of rapid development are over.
István Lenk, president of the Association of Business Leaders in Hungary, agrees that compared to the Big Bang era of the 2010s, when new investors entered the market in droves, Hungary is now in a different phase of evolution. COVID and geopolitical conflicts have taken a toll, after all.
“We are headed in the direction of making use of the sector’s resilience, which is to showcase how to resist economic challenges,” he tells the Budapest Business Journal
The ever-prevalent cost-productivity equation is of even more significant importance now; digitization (especially regarding AI) remains key because of the cost aspect and compliance. When it comes to market growth, Lenk points out that, although new projects are still being delivered, the sector’s development is instead driven by continuous
transformation and activities that are ever more oriented toward value creation.
The history of what is now called business services started with call centers back in the day when hundreds were handling orders, Lenk recalls.
All that now happens in an online environment and at a much higher speed.
“Customer care has been altered, and it took a turn in the direction of knowledge-intensive services,” the ABSL Hungary president says. Those changes did not mean workers were laid off,
AI in the BSC Backyard
The business services sector is known for being a frontrunner when adopting new technologies, although that is more of a necessity than a choice. High-end clientele require top-notch services, which assumes the widespread use of optimized, fast, and cost-effective solutions. Since artificial intelligence is hailed for those features, BSCs became early adopters.
“Companies realized quickly how essential it is to integrate AI into their day-to-day operations; they have invested heavily into ensuring colleagues can master these competencies,” ABSL Hungary president István Lenk says. As a result, it is not only presentations that are delivered to staff;
however; on the contrary, more hands were needed to deal with tasks requiring process-related decision-making.
“Due to the high number of processes that need simplification, parallel legacy systems exist that make it difficult for AI-powered tools to find their way through them. That’s when human oversight comes in,” Lenk explains.
In many cases, the question “Where is my product?” can’t be answered by machines, no matter how simple it sounds. “Humans have a better sense
an internal training platform is also available where a wide range of modules can be accessed. Chat GPT is part of the deal as well.
“We also use it for in-house purposes, and there’s an algorithm in place that monitors to ensure thatno sensitive company data lands there,” Lenk points out.
He adds that there used to be automation solutions in Excel and various code languages that are now being replaced by language processing.
“We need professionals to run it so that the digital marketing department improves and customer service’s data analysis gets better.” AI offers more efficiency, less repetitive tasks, and precision, and it cuts costs, which can lead to faster and more complex services, Lenk adds.
of how fast supply chains operate and what delivery date might be realistic, based on hands-on experience.”
This functional shift took place in finance functions as well. From purchase-to-pay or accounts payable, BSCs were pushed towards more sophisticated tasks such as statutory, treasury, transfer price, and financial planning functions. The idea behind this process has always been to find a way to get things done as cost-effectively as possible, either by automation or business process outsourcing. However, quality should always be in focus.
“The latter can be either another company or a country in the Far East,” Lenk notes, highlighting that businesses won’t rest to optimize and restructure. “Permanent transformation is part of the growth agenda.”
However, while companies are busy keeping the expenses column under control, they can’t afford to ignore a key human factor: career expectations.
“We employ a white-collar workforce, and they have very high expectations when it comes to work content,” the president says. Many seek stability simultaneously, and the mix of those elements should be a winning formula for an inspiring work environment.
“The multinational talent pool, the availability of new career and learning paths, and the alternative locations offer an attractive package for staff, not to mention the power of remote working that adds extra flexibility to working conditions. All these factors have the potential to make the sector popular with many in the long run,” Lenk concludes.
“We need to learn the most possible about the technology, and ever more people will be needed that are capable of understanding these data-fueled AI systems and can establish connections between different departments,” he says.
“What will matter is how to use AI-generated data efficiently and integrate it in different processes. And that’s what we will need people for, who can understand and implement all of that. Therefore, reskilling will be key so that these partial or full-function tasks can be carried out, and only those familiar with the base process, who know what AI gets done and can interpret all that data for other departments, will be able to perform that,” Lenk concludes.
István Lenk, president of ABSL Hungary.
Why Employee Well-being Needs a Seat at the Strategy Table
Employee well-being should become a key factor in corporate strategy-making in the business services sector, given that the bulk of operational costs at a BSC are HR-related. This also requires investments in the workplace that pay off in the long run, says Ottó Feuertag, founder of Europa Design and a supporter of the Well Certification Framework.
to that purpose, too, while also positively impacting colleagues’ moods and mental well-being. Feuertag notes that several other aspects must also be factored into interior design.
The ambiance of the venue matches the interview topic. The leafy Buda neighborhood offers a much-desired workplace lift with a cocktail of fresh air, little noise and sun-lit spaces. Europa Design has been a trendsetter in the local office furniture business for three decades, and founder Ottó Feuertag makes sure everything at the HQ is designed to promote that message.
“You need to consider a bunch of factors when it comes to office furniture because it all impacts us,” he explains to the Budapest Business Journal. Special padding absorbs sound waves and prevents echoes; colors partly contribute
“Light, thermal comfort and access to water all matter; so do things that influence mental health,” he says. Nor should we forget ergonomics as a basis of physical well-being. Unsurprisingly, the push of a button can adjust the height of Feuertag’s desk, and his laptop is also fixed to a movable arm that allows the user to find the right angle.
These considerations are all part of the so-called Well Certification System, which assesses, evaluates and finally certifies the physical and mental impacts of the built environment on people. It encompasses all the traditional and forward-looking areas of the working environment, from ergonomics and interior design to robotically controlled engineering solutions.
Feuertag has been the ultimate representative of that program in this
or try to overcharge the company, new partners need to be sought. “This demands constant monitoring.”
The impact of noise exposure, lack of natural light, poor nutrition, and nonergonomic chairs (to name but a few negative items on a well-being expert’s list) add up. Ideally, when a company is planning to move into a new facility, a detailed plan should be drawn up to check all the boxes to support a new office culture and style of hybrid work. A similar audit is recommended for existing operations. Relevant factors should be assessed and altered based on the expert opinion.
“Everything can be measured, and data can then be examined against the well-being index. Sadly, oftentimes companies are reluctant to carry out even relatively small investments although their multiplicator effect can’t be emphasized enough,” the Europa Design founder adds.
Follow the Money
country since 2018, and as such, his mission is to encourage this humancentric approach to take root and become widespread across the nation. A board member and co-founder of the Wellbeing Association, he carries the flag by planning and completing tailor-made projects to align any workplace with the program’s priorities.
The Utmost Importance
“In line with WHO and OECD recommendations, we consider it of the utmost importance that more companies in Hungary pay attention to the protection and development of their corporate well-being strategy, equally distributed as physical, mental, social and financial well-being.
This requires a thoroughly considered well-being strategy, with the sort of well-designed and highquality programs that can only be achieved if organizations have skilled experts who not only have enthusiasm and dedication but also the proper knowledge of the subject.
Accordingly, the association organizes well-being ambassador and mentor training that enables businesses to have qualified on-site personnel to oversee and execute their own program and involve additional outside experts if necessary.
“We are talking about expertise that can come in handy in everyday operations,” Feuertag says. For instance, if you want to keep your workforce healthy by ordering fruit once or twice a week or involving services like office massage, yoga, or workshops on wellbeing topics, you need to be able to judge whether the produce or service is worth the price and whether its quality is consistent enough. If suppliers don’t comply with quality requirements
Most importantly, the company management should be made aware of how and to what extent the different aspects of well-being can improve staff’s everyday lives and, hence, overall productivity. Feuertag insists that this applies to BSCs in particular. Many don’t realize that around 75%
of total operational costs are HR-related, against which all the rest, from rent to utilities to insurance and more, pale in volume and significance.
“Staff well-being can make or break the success of a company; therefore, I never understand when some executive starts moaning about the costs of related investments. The well-being framework exists for a reason, and it has been proven by hard data how much benefit different elements thereof contribute to talent retainment and productivity.” Not to mention that the value of high wellbeing index companies might be 153% higher, according to S&P statistics.
Feuertag is further convinced that the issue needs to be handled at the right level, which he says is not the case most of the time.
“Employee well-being is still disregarded or treated as a minor HR issue. Instead, it should be dealt with at the highest management level as it directly affects the company’s most valuable asset, its staff. Executives should make it a strategic part of their business plans, and HR professionals should, therefore, get a seat at that table to make management understand its importance. Only this leads to long-term business success,” Feuertag says.
When asked whether companies are beginning to sign up en masse to get Well-certified, given the importance of the above, the expert smiles.
“I believe this was a rhetorical question. There’s room for improvement when it comes to awareness; let’s put it that way. But that’s what we are also working on, to raise awareness, because it’s in the best interest of all stakeholders to embrace the values represented by the Well Certification,” he concludes.
LEVENTE HÖRÖMPÖLI-TÓTH
Ottó Feuertag, founder of Europa Design, is a board member and co-founder of the Well-being Association.
When acoustic and art meet in a cosy corner.
Photo by Tamás Deme
4 Socialite
Hungarian-born George Szirtes Receives U.K.’s Gold Medal for Poetry
Hungarian-born British poet George Szirtes has been awarded His Majesty’s Gold Medal for Poetry for 2024 by the United Kingdom’s King Charles III. Born in Budapest in 1948, Szirtes escaped in 1956 with his family, who settled in London.
DAVID HOLZER
On behalf of the Poetry Medal Committee 2024, the British Poet Laureate Simon Armitage said, “George Szirtes is a deserving recipient of the King’s Gold Medal for Poetry. For decades his crafted, observational poems have turned the spotlight on society and its values, how countries and regimes treat their people, how people operate under fluctuating political ideologies.”
Asked what the prize means to him, Szirtes says, somewhat quizzically, “It’s a mystery, but it’s a very nice mystery. I know it’s slightly different from being given a prize for a book, but I think it’s more than that. I don’t know how else to explain it.”
Szirtes began writing poetry at school in London. Between 1968 and 1974, he studied fine art in Leeds and London. He married fellow artist Clarissa Upchurch in 1970, and the couple have two children. Between 1992 and 2013, Szirtes taught creative writing at the University of East Anglia in Norwich, England. He has received various prizes for his poetry. “The Slant Door” (1979), Szirtes’ first book of poems, was joint winner of the Faber Prize. He won the T S Eliot Prize in 2004 for “Reel.” “Mapping the Delta” (Bloodaxe 2013) was a Poetry Book Society Choice. “Fresh Out of the Sky” (2021) is his most recent publication.
In his “Reading George Szirtes” (Bloodaxe 2008), John Sears wrote that Szirtes’ poetry is “influenced by English and Irish modernism and formalism and also, increasingly, by literary traditions made available by Szirtes’ own extensive translating of Hungarian
poetry into English. Szirtes’ poetry is deeply concerned with exploring family encounters with history as offering provisional and incomplete coordinates for locating the self and its memories within wider historical contexts.”
I spoke to Szirtes at the start of this year. As you might expect from someone who has spent most of his life writing poetry, translating and teaching creative writing, the writer speaks in melodic paragraphs and weighs his words carefully. He retains a slight accent.
First Visit Back
Szirtes wrote three books before going to Hungary in 1984, the first time he’d been back since 1956. After this visit, he began to be described as a “Hungarianborn English poet, sometimes even a Hungarian poet, despite never having written a word in Hungarian,” he says.
After his long poem “Metro,” a meditation on identity, history and Budapest, was published in 1988,
Spiritual Home
“There’s a courtyard in Pest, in Magyar utca, Number 10, known as the Ungerház, built in 1852 by Miklós Ybl. I was taken there in the 1980s, and I thought, ‘This is it, my spiritual home.’ I’ve said, and I don’t know if it’s actually possible, that if I’m dying, take me there, and that’s where I will die,” he says.
“The courtyard is in a Romantic style. It moved me then, and it moves me every time I return. Whenever I go to Budapest, I visit it. It gives me a notion of belonging.”
Szirtes returns to Hungary every year. He’ll be here in April, invited by the University of Pécs. He’ll spend 10 days in Budapest with his wife, a visual artist whose chief subject for many years was Budapest. “The urban landscape has ingrained itself in her as it has in me,” Szirtes says.
“There’s a courtyard in Pest, in Magyar utca, Number 10, known as the Ungerház, built in 1852 by Miklós Ybl. I was taken there in the 1980s, and I thought, ‘This is it, my spiritual home.’ I’ve said, and I don’t know if it’s actually possible, that if I’m dying, take me there, and that’s where I will die.”
They’ll meet with old friends. Szirtes, now 76, is in touch with younger poets, although, he chuckles, “I was sitting at a café with six or seven of them last April, and when I called them ‘the younger generation,’ they laughed because they’re all in their 40s heading toward 50.”
He’s translated many of these poets and thinks they’re very good. This February, his translations of poet and novelist Krisztina Tóth, one of Hungary’s most popular and best-known writers, will be published.
he says he became known as a “Jewish, Hungarian-born English poet.” The first time Szirtes went back to Budapest it changed his life, he tells me.
“It was partly the experience of hearing Hungarian everywhere around me. In that sense, it was a landscape. In England, I didn’t live in any kind of Hungarian circumstances. We didn’t speak Hungarian at home. I hadn’t spoken the language for 28 years.”
Szirtes also experienced a “hard to describe sense of recognizing, not specific streets and buildings but where I was: in Pest. Especially then, in 1984, when the buildings were still very much scarred by the war and the revolution, and they were often in disrepair. I thought I’d hit a part of myself that had been dormant, and it changed my life.”
After this momentous visit, Szirtes began to write about the city (he’d never done so before) and to translate. Today, Szirtes says he identifies as a “Budapesti” rather than a Hungarian.
For the most part, Szirtes and his wife will stick to Pest, where he was born and spent the first eight years of his life. “Pest is heart territory. Buda is liver territory,” he says. “I don’t know it so well. It’s out there somewhere, part of the organism.”
Szirtes will visit his favorite restaurant, M., at 48 Kertész utca, practically opposite the house where he grew up. Appropriately enough, M is associated with Hungarian poets, particularly György Petri. At some point, he’ll have chicken paprika, and he says, “I’ll revisit my courtyard.”
George Szirtes’ “New and Collected Poems” includes the long poem “Metro” set in Budapest’s “Empire underground” and dealing with Szirtes’ need “To find a history which feels like truth” and make this part of his own story. It’s well worth reading.
Budapest Burns Supper Hopes to Raise HUF
20 mln for Sick
Hungarian Kids
Culture Matters
A regular look at culture issues in Hungary and the region
The Grand Ball Room of the Corinthia Hotel Budapest was packed out with guests in Black Tie, ball gowns and Highland Dress for the 28th annual fundraising Budapest Burns Supper on Jan. 25.
The event, marking the 266th anniversary of the birth of Scotland’s national poet Robert (Rabbie) Burns, raises money for the Robert Burns International Foundation, which supports seriously sick children nationwide. Douglas Arnott, chairman of the RBIF, told the Budapest Business
Magyar Posta Commemorates 50th Anniversary of Rubik’s Cube
The Rubik’s Cube is a national symbol of pride in Hungary and an internationally recognized emblem of Hungarian ingenuity, creativity, and engineering, Minister of National Economy Márton Nagy said, according to a statement on his ministry’s website. His remarks came as Magyar Posta issued a commemorative stamp block to mark the 50th anniversary of the puzzle’s patenting. “The success of the Rubik’s Cube demonstrates that despite Hungary’s small size, it can still make a global impact through innovation and creativity. It is no coincidence that the Hungarian government selected the Rubik’s Cube as a symbol of its 2024 presidency,” Nagy stated. He emphasized that innovation has always been a key aspect of Hungarian identity and culture. “Hungary’s strategic geographical position also compels us to adapt and develop creative solutions,” he added.
Orbán: Film ‘Both Art and Industry,’ Requires State Support Prime Minister Viktor Orbán emphasized the dual nature of film as both an art and an industry, highlighting the need for state involvement in its development, during the opening of a new film studio complex at the Hungarian Film Institute in Fót (25 km northeast of Budapest by road) on Jan. 30.
Journal , “This year’s event raised
HUF 20.6 million or EUR 50,600.” Watch this space for more details on how it will be spent. On the morning of the Burns Supper, Zoltán Magyar,
According to state news agency MTI, Orbán remarked that filmmaking is in the Hungarians’ blood, recalling that Magyar pioneers played a role in the birth of Hollywood during the silent film era. He noted that in the first half of the 20th century, Hungarian filmmakers set out to make a global impact. In contrast, in the latter half, film became a tool to express what was forbidden and to help endure oppression under communist rule.
The PM argued that films produced under communism contributed to the eventual collapse of the regime but added that momentum was lost after the transition to democracy. The battle between “regime changers like us” and the “ancien régime” lasted for 20 years, which, according to Orbán, was not beneficial for Hungarian cinema.
Neo-Nazi Music Network Plans Concert in Budapest: Bellingcat
A branch of the international neo-Nazi network Blood & Honor, which the U.K. government suspects of involvement in terrorist activity, is organizing a twoday concert in Budapest, according to investigative outlet Bellingcat. The Hungarian affiliate of B&H, a U.K.founded neo-Nazi music network, announced that more than 10 bands from across Europe will perform at the event, scheduled for early February. The concert is the latest in a series of international neo-Nazi gatherings in the Hungarian capital, some of which have been banned in previous years. February holds special significance
president of the Hungarian-Scottish Society and founder of the Robert Burns International Foundation, was joined by the Robert Burns All-Stars Pipeband (the Scottish pipers and
for Hungarian and international farright groups, many of whom travel to Budapest to commemorate Nazi and collaborationist forces who attempted to flee the besieged capital in February 1945. These events are referred to by organizers as the “Day of Honor.” Thorsten Hindrichs, a researcher on European far-right music scenes at Johannes Gutenberg University of Mainz, described Blood & Honor as “an international right-wing terrorist network” in comments to Bellingcat.
Australia Returns Hungarian Musical Treasures to National Library
Hungary has expressed gratitude to Australia for assisting in “healing the wound that the 20th century caused to us,” Deputy State Secretary for Public Collections and Cultural Development Máté Vincze said at the National Széchényi Library (OSzK), according to a statement issued on Jan. 29. Vincze was speaking at the presentation of a collection of 248 works, including documents, scores, and notes on Hungarian folk music and choral compositions, provided to OSzK by the National Library of Australia. “In the 20th century, many things had to be taken abroad from Hungary in order to rescue them. This is why it is an outstanding development that these invaluable documents, scores, and notes that were no longer in Hungary are returning to our country,” Vincze said. OSzK Director Dávid Rózsa noted that the collection consists exclusively
drummers flown into Budapest for the gala), the Jászai Mari Award-winning actor and musician Sándor Sasvári, and Deputy Speaker of the Hungarian Parliament István Jakab, for a unique ceremony which saw the changing of the Parliamentary Guard at the main steps of the Hungarian Parliament accompanied by bagpipes.
Guests at the Budapest Burns Supper get into the spirit of the evening with some traditional Scottish country dancing.
of works by Hungarian composers such as Béla Bartók and Zoltán Kodály, along with Hungarian music education publications. “More than one-third of the items were never to be found in OSzK’s collection before,” he added.
Joan of Arc Statue Offered Refuge in Mátészalka Mátészalka (a town with a population of 15,157, according to the Central Statistical Office, some 290 km northeast of Budapest by road) has offered to host a somewhat controversial statue of Joan of Arc that will be removed from France’s Nice, the co-ruling Christian Democratic People’s Party (KDNP) said in a statement on Jan. 27. It noted that the statue, made by the Atelier Missor group of artists at the city’s request last year, would have to be removed from the city under a ruling by a public administration court. According to a report by the British-based online newspaper The Independent, it was ruled that the EUR 170,000 bronze statue violated public procurement regulations because it was commissioned without a competitive tender. “Jeanne d’Arc’s fight and martyrdom goes on,” KDNP leader Zsolt Semjén, group leader István Simicskó and Mátészalka mayor Péter Hanusi said in the statement. “The changes that have taken place in America will hopefully arrive in Europe soon [...] KDNP supports any endeavor aimed at saving our Christian-based Western culture,” they added.
Christopher Tait, described as Scotland’s leading Robert Burns reenactor, performs “Address to the Haggis,” a poem by Burns commemorating the “Great Chieftain o’ the Puddin-race.”
Chamber of Commerce Corner
This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu
German-Hungarian Chamber of Industry and Commerce (DUIHK)
What will 2025 bring for German and Hungarian economic relations? This was the key topic of the DUIHK’s annual kick-off event on Thursday. The chamber had invited Minister of Economy Márton Nagy and the director of the German Economic Institute, Michael Hüther, who presented the current economic situation in Hungary, Germany, and the world, and shared their expectations for 2025 from their respective perspectives. DUIHK President András Sávos set the scene for this in his opening remarks. According to him, economic development in 2024 was not a success story for either country.
Swiss-Hungarian Chamber of Commerce (Swisscham)
Swisscham will organize its traditional year-opening networking event for 2025 in the framework of the 30th-anniversary celebrations. The event will begin with brief introductions from 10 members, including new and long-standing firms. The program will continue with informal discussions, offering an excellent opportunity to build valuable connections and form new acquaintances. Member Emil Frey Hungary provides the venue, its Toyota Showroom, where guests can view the displayed cars and enjoy snacks and refreshing drinks, ensuring a truly special experience.
• When: Feb. 13, 5-7 p.m.
• Where: Emil Frey Magyarország Kft., Toyota Showroom, Mogyoródi út 34-40, Budapest 1149. • Fee: Members free; non-members HUF 20,000.
The DUIHK was, therefore, all the prouder to have reached a membership figure of more than 920 companies again for last year. Looking to the future, Sávos said Germany would remain Hungary’s most important economic partner for the foreseeable future and Hungary could rely on a complex and resilient entrepreneurial base that had grown over many years. To maximize the advantages of this network of relationships, he said, the main requirements were a qualified workforce, a predictable legal environment and a performance culture based on knowledge and competition. The chamber is
ready to play an active role in this, Sávos and DUIHK managing director Barbara Zollmann added. In his speech, Minister Nagy focussed on Hungary’s exceptionally close ties with the German economy. Hungary had benefited massively from this over the past decades. However, in view of the weak economy in Germany, it currently represents an enormous burden for growth in Hungary. Nagy therefore called for a decisive strengthening of the electric vehicle industry, as it is of essential importance for both countries. In addition, Germany should also stimulate the economy more strongly with fiscal means, and relax its “debt brake” to do so. In this context, Hüther pointed out that the declining competitiveness of Germany and Europe was primarily due to the structural problems of recent years, which would not be solved with short-term fiscal stimuli. He pleaded for more European cooperation on the most important common issues (climate, energy, investment, and defence). It became clear from the presentations and discussions that the economic challenges in Hungary, Germany and Europe are very similar and require joint European as well as Hungarian and German efforts.
British Chamber of Commerce in Hungary (BCCH)
The BCCH invites guests to its first event of 2025, the latest edition of the CEO Dinner, to be held in February, where the speaker will be Péter Szabó, managing director of Centrica Business Solutions. The event combines a three-course dinner with wine and welcome drinks while hearing the views of a foremost professional on recent developments and current industry affairs. BCCH chairman Duncan Graham will give the opening remarks. Centrica Business Solutions plans, develops, and finances energy-efficient, sustainable and renewable solutions for customers worldwide. The firm aims to ensure cost savings and help the net zero transition, energizing a greener, fairer future. Péter Szabó has a lifelong interest in energy, what makes things work, and what makes them more efficient. He joined Centrica’s legacy Hungarian business as corporate development manager 18 years ago and has managed the Hungarian team in various roles. He recently became a Centrica director in the United Kingdom and, as a result, possesses first-hand knowledge of the U.K. energy market landscape and challenges, which gives him an outstanding opportunity to bring new ideas to the Hungarian market.
• When: Thursday, Feb.13, 6-8 p.m. • Where: Matild Palace Hotel, Váci u. 36, Budapest 1056 • Fee: Members HUF 28,000 (plus VAT); non-members HUF 38,000(plus VAT)
Hungarian-Norwegian Chamber of Commerce (HNCC)
The TCLF Fair Budapest, the showcase of the textile, cloth, leather and fur industry, is sponsored by HNCC, among others. The chamber wishes to attract as many interested Norwegian companies to the fair as possible. To that end, ads have been published in the professional media Tekstil and Sko in Norway. HNCC Chairman Adam Laska recently visited the organizer (La-Impex, Szentendre) to get more information on the state, prospects and details of the event. He also discussed this issue with the first counsellor and deputy head of mission at the Norwegian embassy, Herman Baskår. Both Sándor Zwack (chairman of the board of Zwack Unicum) and Tamás Fehér (partner at Jalsovszky Lawyer’s Office) assured Laska about their support in organizing programs for the Norwegian exhibitors during their stay in Budapest.
• When: April 2-4. • Where: Puskás Aréna, Istvánmezei út 3-5. Budapest, 1146.
Canadian Chamber of Commerce in Hungary
(CCCH)
The CCCH invites business leaders, innovators, legal professionals, and AI enthusiasts to its AI Business Breakfast. Tímea Bana, a partner at law firm Kinstellar Hungary, with in-dept experience in IP/IT, data protection and AI related legal issues, will lead a discussion on the legal framework governing AI technologies, addressing critical questions about ownership of AI-generated content and best practices for safeguarding intellectual property. A panel of industry representatives will explore the challenges and opportunities presented by AI integration across various sectors, from software development to financial analysis. Participants will learn to balance data collection with privacy concerns under GDPR regulations. The event will also feature an interactive Q&A session, allowing attendees to engage directly with experts and share their experiences.
• When: Thursday, Feb. 20, 8:30 a.m. • Where: BuildExt, ZenGarden Offices, Horváth u. 14-24, Budapest 1027. • Fee: Members HUF 14, 900 + VAT; non-members: HUF 24,900 + VAT.
Belgian Business Club in Hungary (Belgabiz)
Belgabiz will hold a networking event titled “NextGen Leadership.” The special guest of the evening will be Rachel Altmann, one of the founders of BeHive Consulting, a pioneer behavioral science consultancy company and a pioneer honoree of Forbes’ “30 Under 30” 2023 list.
• When: Thursday, Feb. 13, 6-9 p.m. • Where: Impact Hub, Wesselényi utca 17, Budapest 1077
