EME Macro/Strategy: Hungary – growth-thirsty, SMEs remain key to the strategy
PM Orban achieved a significant political goal by securing, simultaneously, ample EU funds support and a de facto major watering down of the new rule of law directive, which entered into force in January 2021. EU funds access, plus a highly growth-focused MNB, in our view, means that GDP growth potential in Hungary should be unaffected by COVID-19, even though 2021E is likely to remain challenging, given the drag on tourism.According to recent comments from PM Orban and the public recommendations of the MNB on long-term growth potential and productivity prospects, the policy mix will remain geared towards supporting SMEs, probably shifting the focus somewhat to agriculture and services relative to manufacturing in the next five years. There is a strong policy objective to support large Hungarian companies to leverage on the stock market and to invest abroad.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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