Péter Virovácz: a smaller minimum wage increase will be enough, the first upgrade may come next year

Following the spring government change, a stable relationship has formed between the market and domestic assets, with the euro-forint exchange rate remaining below 370. Investor confidence is anchored by the planned euro introduction timeline and political commitments, despite ongoing geopolitical tensions. The 2027 budget aims for cautious adjustments in income policy, with a focus on fiscal credibility and a medium-term consolidation path. The Hungarian economy is expected to grow, with GDP projections of 1.8% in 2026 and 2.7% in 2027. However, challenges remain, including a significant decrease in the working-age population and inflationary pressures, which may affect wage growth and employment policies.