Hungary's economy pressured by high inflation, euro prospects and drought‑hit river transport

Hungary's investment landscape has been reshaped by soaring inflation—over 25% in recent years—and an 18% effective base interest rate, delivering returns not seen in decades. Asset‑manager Hold Alapkezelő warned that the possible adoption of the euro could bring a clearer, more comparable market, even as the government tightens rules on trust asset management and removes a 15% tax advantage for such structures. The number of high‑net‑worth clients seeking private‑bank services is estimated at 40‑60 thousand.

At the same time, a severe drought has lowered water levels in major European rivers, notably the Rhine and the Danube. The reduced flow hampers the transport of chemicals, oil products and other bulk goods, raising freight costs and disrupting supply chains. In Hungary, the Danube’s decline also threatens cooling water supplies for the Paks nuclear power plant, curbing electricity generation and pushing energy prices higher across the region.