Page 74 - CE Outlook Regions 2022

5.2 Markets - Estonia

Analysts are pessimistic about the prospects for NASDAQ Estonia in 2022,
however the country’s seven ‘unicorns’, such as Bolt, will be making splashes
throughout the year.

Geopolitical developments, coupled with the lingering COVID-19 depression,
record-high energy prices, high inflation, could mean stock prices will be
hovering at the lower end throughout 2022.

5.3 Markets - Hungary

The Hungarian forint lost 10% of its value in 2019 and 2020
versus the euro, making it one of the worst-performing currencies
globally. The EUR/HUF hit an all-time low in November at 372
even despite the aggressive rate hike of the National Bank, which
over the last five months has become one of the most hawkish in
Europe.

The contrast between the government’s expansionary fiscal
policy and the hawkish stance of the MNB has not helped to

shore up confidence in the forint and the central bank’s
aggressive stance has done little to stem the slide of the
currency. The amount of forints needed to buy a euro has gone
up 4% since the MNB began its monetary tightening in June and
again by the same pace since the start of the year.

EUR/HUF forecasts for 2022 vary in a wide range. Societe
Generale says the forint could strengthen to 340, making the
Hungarian currency one of the best investments of 2022. The

deterioration of the global investment climate, the government’s
dispute with the European Commission and the spring
parliamentary elections pose risks for the currency.

Commerzbank is less bullish, saying that new historic lows could
be reached in 2022. It sees the Hungarian currency
underperforming compared to regional peers despite the MNB’s

74 CE Outlook 2022 www.intellinews.com