The increase in real wages affects consumption, which is important for stimulating the economy

By: Trademagazin Date: 2024. 07. 25. 13:21

The increase in real wages means that more money remains in people’s pockets, more money is left for consumption, which is very important for stimulating the economy – the state secretary responsible for employment policy of the Ministry of National Economy (NGM) commented on the latest earnings data on Kossuth radio Good morning, Hungary! in his show.

The Central Statistical Office announced on Wednesday that in May this year, the gross average earnings of full-time employees was HUF 652,000, which is a 14.8 percent increase compared to a year earlier, and the real earnings increased by 10.4 percent.

Sándor Czomba pointed out that the increase in real earnings in May – which positively surprised the government and analysts – can be explained by the fact that while inflation is fortunately between 4-5 percent, the increase in average earnings is around 15 percent. All this means that real earnings are continuously and dynamically increasing in Hungary.

Speaking about the increase in real wages, the state secretary also mentioned that the past years have taken a toll on the country both mentally and financially, so people are still rightly cautious, which can be felt in the increase in consumption.