Hungary (HUF, Forint) Economic & Currency Analysis

Hungary (HUF, Forint) Currency FX Analysis

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Short Term Rating Currency Ratings Help
Long Term Rating Economic Ratings Help


Hungary SWOT Statistics

Strengths + Opportunities = 7

Threats + Weaknesses = 4

When strengths & opportunities substantially exceed threats & weaknesses an investment in the Forint has great long term potential.

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Officially known as the Republic of Hungary, the country is a landlocked nation within Central Europe. The city of Budapest is both the nation's capital and it's largest city. Hungarian, a derivative of the Finno-Ugric family, is the official language. A musical, poetic prayer, "Himnusz," serves as the country's national anthem. The national flag consists of three horizontal stripes. From top to bottom, the colors of the stripes are red, white and green. Hungary is a market economy and a part of the European Union's (EU) single market. The Hungarian National Bank is in charge of the country's monetary policy while the nation's fiscal policy follows that of the European Union. The country has a comprehensive tax system that includes personal and corporate income tax as well as a value added tax, which is a tax on consumption. Hungary's primary industrial sectors include mining, metallurgy, construction materials, processed foods, textiles, chemicals (pharmaceuticals), motor vehicles. Foreign investment in Hungary incorporates tourism, luxury vehicle production, renewable energy systems and information technology.

Forint Currency Analysis Update

Hungary (HUF) is slowly transforming from a centralized country into a capitalist-based economy. Hungary's Fundamental Currency Analysis (short term investment): Hungary’s currency potential of low. They have significant potential according to the purchase price parity; however, investment flows are a bit weak. Hungary's Value Investor Survey (short term investment): Hungary’s economic environment is slightly unfavorable for long term economic growth due to a significant weakness: declining birth rate. Hungary's Currency Trading Strategy: A a slightly overvalued currency, moderate investment flow potential and slightly negative business environment lead to a neutral outlook for Hungarian investments.

Factors That Positively Affect The Forint

Factors That Negatively Affect The Forint

  • Declining Birth Rate The effects of a declining population can be adverse for an economy which has borrowed extensively for repayment by younger generations; however, a smaller human population has a smaller impact on...