The forint is being severely affected by the critical drought, and analysts are seeing a significant weakening.
The 2026 extraordinary summer drought will have a serious impact not only on agriculture but also on the macroeconomy. The water level of the Danube has fallen to a historical low, which has slowed down river transport. The cooling water from the Paks Nuclear Power Plant is also missing, which has resulted in significant production losses. The resulting capacity losses will lead to more expensive energy imports and rising inflation, as well as a weakening of the forint, according to Akcenta CZ.
The extreme summer drought of 2026 not only affects agriculture but has also become a serious macroeconomic risk. Due to the historically low water level of the Danube, river transport has been disrupted, and the operation of the Paks Nuclear Power Plant has fallen to a fraction of its capacity due to a lack of cooling water. The loss of capacity leads to increasingly expensive energy imports, increasing inflationary pressure, and a weakening of the Hungarian forint, according to a statement by Akcenta CZ, one of Central Europe’s largest non-banking financial institutions, based in the Czech Republic.
