Browse Topics
Tools
Editor's choice

Doing business in Belgium

A guide to doing gaffe-free business here.

Belgium country factbook

Includes geography, people, government, economy and transnational issues.

Student accommodation in Belgium

Find an affordable roof over her head.

50 years on, Asterix still holding out

Heroic Gauls celebrate their half century.

The not-so-secret recipe for Belgian frites

Kimberley uncovers the sacred rituals of Frite Almighty.

How to repatriate successfully

Tips for managing a successful relocation back home.

Internaxx Stock Market
Index Last Var.(%)
BEL 20 2119.3 0.50
DAX 5252.45 1.50
IBEX 30 10726.8 0.59
CAC 40 3377.59 1.40
FTSE 100 4564.5 0.79
AEX 276.85 0.95
DJIA 9096.72 -0.13
Nasdaq 1975.51 0.39
FTSE MIB 20341.67 1.65
TSX Composite 10570.54 -1.74
ASX 4148.9 -0.60
Hang seng 20135.5 -2.37
Straits Times 0.00
ISEQ 20 442.48 0.27
You are here: Home Life in News Focus Crisis-hit Hungary: the worst is yet to come

22/06/2009Crisis-hit Hungary: the worst is yet to come

The economic crisis is spreading through Hungary from the financial sector to manufacturing industries and services.

Budapest -- In Hungary, one of the countries hardest hit by the global financial crisis, most believe that the worst is yet to come, with the economy struggling and facing more pain from severe austerity measures.

"I really don't know how we will survive the crisis," said Levente Benedekfi, a construction company owner who told AFP his business has suffered terribly since the crisis hit in late 2008.

In 2008, the number of new apartments sold was half the 2007 figure, official figures show, and the outlook remains grim for 2009.

In Budapest alone, between 2,000 and 2,500 new sales are expected in 2009, compared to 2008’s already low figure of 7,000.

"While we usually sell between 10 and 15 apartments a month, we have sold altogether two flats in the last nine months," said Benedekfi, who now has 480 empty apartments.

AFP PHOTO / ATTILA KISBENEDEK
A sign advertises flats on sale on the wall of the brand new Mandarin Park in Budapest on 12 June  2009

"In addition, the company has a Swiss-franc-denominated debt of HUF 3 billion (EUR 10.7 million, USD 15.1 million), which we expected to pay back from the sale of the apartments," he said.

Many Hungarians borrowed heavily in foreign currencies because forint interest rates were higher but with the weakening of the Hungarian currency, monthly repayments literally "exploded", said Benedekfi.

He and his associates now plan to mortgage their own properties, "the family silver" as he put it, to try to survive.

The future is far from bright

"The effects of the crisis have been spreading from the financial sector, through industries like car manufacturing to engulf services," David Nemeth, an analyst with ING Bank, told AFP.

"By now, the downturn has hit suppliers and subcontractors too, resulting in chains of debt, most frequently in the construction sector," Nemeth said.

0 reactions to this article

Inside Expatica
Looking for work in Belgium

Looking for work in Belgium

This handy guide from Expertise in Labour Mobility includes how to write a CV, application procedure, interview dos and don'ts, Belgian management culture.

Practical, easy-to-use, free and... in English

Practical, easy-to-use, free and... in English

Belgium’s first alternative directory assistance services - available through the shortcode 14-14 - can now be accessed on the internet.

Finding a rental home in Belgium

Finding a rental home in Belgium

Moving to Belgium presents a host of challenges to expats, not least of all finding the right home.

Learning to cope with life abroad

Learning to cope with life abroad

The psychological effects of global mobility can be physically painful.