Debrecen4U June 12, 2026

Major Industrial Hubs in Eastern Hungary Support Economy, Says OTP Bank Expert

Automotive developments in Debrecen were among the topics discussed on Médiacentrum Debrecen’s HírPONT, where Gergely Tardos, Director of the OTP Bank Analysis Centre, spoke to Editor-in-Chief Zsuzsa Keserű during Portfolio Group’s Debrecen Economic Forum.

According to Gergely Tardos, Debrecen is exceptional in this regard, having attracted the largest number of automotive investments, which has contributed significantly to the city’s development. He said that Debrecen could follow a similar path to that of Székesfehérvár and Győr, cities that for many years were regarded with envy by much of the country. He stated that it is unquestionably a positive development for a city to establish a diversified economy and become a hub for a major industry.

The Director of the OTP Bank Analysis Centre also discussed the exchange rate of the Hungarian forint. He emphasised that the strengthening of the forint did not begin recently. More than a year before the election, former Finance Minister Mihály Varga joined the Hungarian National Bank (MNB) and concluded that, due to Hungary’s inflationary challenges, it was necessary to abandon the previous policy of a weakening forint that had effectively tolerated or even encouraged the currency’s depreciation.

At that point, the forint moved onto an appreciating trajectory, a trend that was further reinforced by the election result and growing confidence among foreign investors. Gergely Tardos does not expect the forint to weaken significantly.

At the same time, he believes the currency is unlikely to strengthen much further from its current level, partly because of the conflict involving Iran and partly because the Hungarian National Bank is expected to begin cutting interest rates sooner or later. In his view, exporters will need to adapt to operating in an environment with a stronger forint.

The introduction of the euro in Hungary was also discussed during the programme. Editor-in-Chief Zsuzsa Keserű recalled that Gergely Tardos had recently described the path towards euro adoption as a difficult one. The director stated that introducing the euro and meeting the necessary conditions within a relatively short timeframe is achievable, but it would require considerable effort. At present, Hungary does not satisfy any of the Maastricht criteria required for euro adoption. The country belongs to a group of states where, five to six years before the targeted introduction date, the budget deficit remains high, public debt is elevated, and debt levels are currently rising rather than falling.

The budget deficit would need to be reduced to below 3 per cent. Due to the election year and the relatively high deficits recorded in previous years, the budget deficit will be around 7 per cent if no corrective measures are taken. Public debt stood at approximately 75 per cent of GDP at the end of last year and was slightly higher in the first quarter. This figure would need either to be reduced below 60 per cent or placed on a clearly sustainable downward trajectory.

However, Gergely Tardos stressed that the situation is far from hopeless. He noted that, with regard to almost every criterion, there have been countries that adopted the euro despite starting from a weaker position than Hungary. There were also countries that were significantly closer to euro adoption while being in a worse position in certain respects, such as the interest-rate environment. According to the expert, introducing the euro would require a relatively ambitious timetable and very swift policy action.

Source and photo credit: dehir.hu