Hungary's economy is recovering as the prospect of peace talks between Russia and the US boosts market confidence, with leaders emphasising the economic advantages of diplomatic progress.
Prime Minister Viktor Orban discussed the economic impact in a video posted on his Facebook page, where he showcased stock market charts and exchange rate data, according to a Tass report.
“I see that gas prices have already fallen by 10%, and the Forint is gaining momentum … If this continues, it will only be a matter of time before the Euro exchange rate drops below 400 Forints. That is what peace means,” he commented.
Over the past week, the Hungarian Forint has experienced modest gains, reflecting market optimism about potential diplomatic progress.
Orban attributed this economic momentum to Hungary’s continued efforts for peace, stating: “Peace has its economic benefits. That is why we launched a peacekeeping mission and have fought for peace for the past three years.”
He also referenced the 12th February phone call between US President Donald Trump and Russian President Vladimir Putin, during which both leaders agreed to meet and discuss ending the war in Ukraine. Confident that a peaceful resolution would contribute to Hungary’s financial stability, he stated: “We must support peace.”
Hungary is not alone in facing economic challenges stemming from the war in Ukraine and Western sanctions on Russia.
Many European countries have grappled with rising energy costs, supply chain disruptions, and inflation due to their dependence on Russian oil and gas. Germany, the largest economy in Europe, experienced industrial slowdowns, while energy-intensive industries in nations like Italy and France were severely impacted.
Orban has previously asserted that EU sanctions on Russia have had a severe impact on Hungary, highlighting his nation’s interest in having them lifted. According to Hungarian government estimates, the country has incurred losses of approximately €20 billion over the past three years due to rising energy costs.