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Economic Recovery of Budapest

The pandemic has brought significant changes to the economic sector. It has particularly affected small and medium-sized businesses, which do not possess substantial reserves, and many have had to suspend all or part of their activities due to state regulations and restrictions on movement.

Some sectors have virtually come to a standstill (e.g. tourism, catering and other services), while demand for online services have increased, and companies that have successfully switched to deliveries have been able to take up some of the workforce. Overall, however, there is a high level of unemployment, which is aggravated by the return of seasonal workers working abroad. As deliveries spread, it brought new demands on urban logistics.

The crisis situation has shown that there is a greater need for local production chains that strengthen the stability of the local economy, and also have a lower environmental impact. Budapest needs to put more emphasis on local development, it is especially important to help small and medium-sized enterprises, especially with regards to neighbourhood services. It is in our common interest to help the sectors affected by the crisis to recover, especially those based on personal contacts or tourism. In addition, the city needs to help people who have lost their jobs overnight as a result of the pandemic.

The pandemic is expected to result in a prolonged economic crisis and a radical change in the economic environment. Different forecasts point to crises of different depths, but the recession itself is inevitable. The goal is for Budapest to be an adaptive city that can cope with unforeseen crisis situations.

Like Budapest, the restart program must be an open, flexible program that continuously responds to new challenges. Therefore, Restart Budapest is a dynamically developing action plan, the measures of which will be announced and expanded in several stages in the coming weeks. Don’ forget to check our website for more updates about the program!