Just two weeks ago, the Hungarian Forint made headlines due to growing stronger against USD. Right now, after the latest Fed announcement, HUF is stronger than anytime over the last three and a half years at around HUF 330.
Fed announcement for Q4 2025
On September 17, the Fed, the U.S. Federal Reserve Bank has issued its latest FOMC statement. The Federal Open Market Committee is the chief body of U.S. monetary policy, and their decisions affect global as well as U.S. markets. In their latest statement, they lowered the federal interest rate by 0.25 percentage points, which is within the expected range in wake of the summer labor market results. This way the target range for the federal funds is now in the 4 to 4.25% range.
This is considered quite a lax monetary policy beside the recent developments of increasing inflation and unemployment in the States: in August, inflation was at 2.9% and unemployment at 4.3%, both growing. At the same time, stock indices are soaring high, while expected GDP growth in 2025 is well over 3%.
The Forint’s impressive strength
As of mid-September 2025, the Forint has reached a notable high against the US dollar, with exchange rates dipping below the 330 mark: a result not seen since early 2022. Just this year, HUF gained approximately 16.7% against the U.S. dollar since the beginning of this year.
HUF remains strong against the euro too. Since January, it has gained 5.3% against it, and EUR has been below HUF 400 for months. Most recently, EUR went below HUF 390, for the first time since May 2024.
Meanwhile, USD has been weakening against EUR for some time, and currently it is around 1.18.
A glimpse into Hungary’s economy
The impressive performance of HUF is happening for various reasons beside the poor developments in the United States. Most importantly, Hungary’s stable and relatively high benchmark interest rates make Forint-denominated assets an attractive option for international investors.
GDP growth is gaining momentum very slowly, but steadily. While it is projected between 0.5% and 0.8% in 2025, it is expected to climb to 2.5% in 2026. In July, which is the latest month from which statistics are available, construction output volume grew by 4.9% year-on-year and increased by 0.8% compared to the previous month. While industrial production lessened by 1.0% year-on-year, it grew by 2.0% compared to the previous month. Retail sales were 1.7% up on the same period last year and 0.5% down on the previous month.
With a commitment to low corporate tax (at 9%) and becoming a Safe Harbor regarding the Global Minimum Tax, Hungary remains an attractive destination for those seeking to establish new business in the EU, regardless the size of the operation.
Make the most of Hungary with Helpers
The strong Forint and a growing economy create a fertile ground for Hungarian businesses to succeed. While it’s always wise to stay informed about the changing economic landscape, the current outlook is mostly positive. We at Helpers Finance always do our best to keep you up to date, both about recent events and your own business matters. Should you have any questions or comments, never hesitate to contact us.
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