This may be the reason for the (temporarily?) low domestic consumption

Although there is a debate among economists about the extent to which the savings rate affects the standard of living, it is clear that a high savings rate does not necessarily mean a better standard of living with a low income. In Hungary, households often save out of compulsion because they are afraid of the future due to inflation and economic uncertainty. This means that Hungarian households often spend less than they could afford.

There is a close relationship between the consumption and income of Hungarian households. Low consumption is a consequence not only of income levels, but also of socio-cultural factors. According to Eurostat data, there is a significant difference between the consumption and savings of Hungarian households. While the savings rate has risen slightly, consumption has fallen significantly in recent years.

Euro-based comparisons also show a similar picture: the standard of living of Hungarian households has been among the lowest in the EU in recent years. Compared to the euro zone, the savings and consumption of Hungarian households are both at a low level.

Actual household consumption, which includes services provided by the state and non-profit institutions, is also low. This means that Hungarian households not only consume little from their directly available income, but also from available services.

The consumption and living standards of Hungarian households are significantly behind the EU average. The trend is clear: the standard of living is constantly falling, and urgent steps are needed to reverse this process.