Hungary Suffers from Capital Outflow

Businessn.a. ♦ Published: January 9, 2013; 19:11 ♦ (Vindobona)

Hungary´s banking industry faces a substantial loss of confidence. More and more Hungarians shift their deposits to foreign banks.

Hungary Suffers from Capital Outflow / Picture: © Vindobona.org

Last year, Hungarians withdrew a substantial part of their deposits. About 1.0% of the GDP has been shifted to foreign banks. This corresponds to € 1.0bn. According to economists this is not comparable with the situation in Greece or Spain. However, the tendency shows a clear and persistent upward trend. Most of the savers who withdrew their deposits are high-income earners. According…