Rapid Growth in Household Financial Assets: A Doubling in Six Years
Household Savings in Hungary Reach Record Levels in 2024
According to a recent report by the Hungarian Central Bank (Magyar Nemzeti Bank/MNB), the stock of household financial assets, also known as savings, saw a rapid growth in 2024, exceeding HUF 111,200 billion (EUR 277.4 billion) by the end of the year. This marks the highest level of savings ever recorded in Hungary, with a remarkable 14% growth rate that outpaced inflation.
The report highlights the significant increase in the total savings portfolio of households, which has more than doubled in size over the past six years. Mutual fund shares emerged as the top-performing asset class in 2024, with a growth of almost 30% to over HUF 13,550 billion (EUR 33.7 billion) within a year.
Additionally, investments in Hungarian government bonds rose by 11.1% to nearly HUF 14 billion (EUR 34.9 billion) in 2024. Deposits held by households also grew by 15%, reaching a total of almost HUF 16,400 billion (EUR 40.8 billion), while the stock of cash increased by 7.6% to just over HUF 6,500 billion (EUR 16 billion).
Shares and equities continue to constitute the largest share of the savings portfolio, accounting for over 50%, followed by mutual funds at 12.2%. Deposits made up 14.7% of the financial assets, government securities accounted for 12.5%, and cash’s share decreased slightly from 6.6% to 5.9% in the past year.
On the other hand, household liabilities increased by 9.4% in 2024, totaling close to HUF 16,630 billion (EUR 41.4 billion) by the end of the year. The majority of these liabilities consisted of loans from various financial institutions.
Overall, the net financial wealth of households, after deducting liabilities, reached a new peak of HUF 94,574.5 billion (EUR 235.5 billion) by the end of 2024, reflecting a 15% increase compared to the previous year.
These statistics indicate a strong financial position for Hungarian households, with a growing emphasis on investment vehicles such as mutual funds and government bonds. The record levels of savings reflect a positive trend in the country’s economic landscape, providing a solid foundation for future financial growth and stability.
