Hungary Information Technology Q1 2021

Hungary Information Technology Q1 2021

Key View:

The core scenario is for an increase in business investment and household consumption to accompany the vaccinationprocess in Hungary 2021 when confidence levels strengthen as the region passes through the acute phase of the public healthcrisis, which would see the IT market return to growth. IT market growth will slow from 2022 once pent-up demand is tapped, butthere will still be a strong trend because of the acceleration to digital transformation due to the pandemic experience in the privateand public sector, with additional momentum provided by forint appreciation that will deliver purchasing power gains. Uncertaintyaround the core scenario persists into 2021, with the highest impact downside risk being of a second wave of infections andlockdown in winter 2020/21, but the timing of the vaccine and response in terms of consumption and investment levels is anotherarea we will be watching closely in 2021.