Consumption in Hungary is cause for concern

By: Trademagazin Date: 2024. 06. 26. 12:22

According to the latest data from Eurostat, Hungary is only 70% of the European Union average in terms of per capita consumption, thus placing it in last place in the EU ranking, even behind Bulgaria. In addition to Romania and Slovenia, which significantly exceed the EU average, Hungary’s situation is a cause for concern among economic analysts.

However, the Macronomic Institute criticizes Eurostat’s methodology. According to Dániel Molnár, the institute’s senior macroeconomic analyst, the statistical data do not accurately reflect the real situation, as they do not take into account the decision-making situations of households and the effects of previous economic crises. In Hungary, in contrast to Romanian households, the population is more inclined to save and spend less. According to the analyst, this difference in consumption habits can also be a consequence of the profound financial trauma resulting from the crisis of foreign currency loans – reports Infostart.

Regarding the extent of poverty, according to the Makronom Institute, the situation is more complicated than the mere consumption data suggests. In Hungary, the risk of social exclusion or poverty is 19.7%, which may seem high, but in the EU context, this rate is higher in several member states, such as Croatia or the Baltic countries. In Romania, for example, 32% of the population is considered poor.

According to Éva Palócz, CEO of Kopint-Tárki, the low wage level of the Hungarian economy and high tax burdens also contribute to the restraint of consumption. These factors lead to a decrease in net incomes, which indirectly affects consumption indicators.