Mainly the fall in domestic demand caused the decline in GDP

Calculated on constant prices the domestic household consumption expenditure in the first nine months declined by 8 percent, that strongly affected the drop in gross domestic product (7.1 percent) in the first three quarter of the year.

According to the Central Statistical Office (KSH); in Hungary – unlike in many Western European countries – measures were not taken place to stimulate demand. The suppressed
wages and the relatively significant increase in the consumer price caused the around 2 percent decrease in real wages and due to the reduced pensions and many other social benefits in real terms, a significant drop in internal demand has occured.