GKI: Is domestic consumption weak?
Some domestic economists are looking for explanations for the anomaly called the “consumption puzzle” by the Minister of National Economy. In other words: why does this year’s strong real wage growth not drag consumption down with it?
A popular argument is the presence of the motive of prudence, i.e. the fact that after the previous years burdened with crises and in the shadow of the Russian-Ukrainian war, people are less willing to spend, they prefer to rebuild their inflated savings, or pay off their previous loans, or even save for the uncertain future, already if they can.
In order to better understand the dynamics of domestic consumption, it is advisable to compare it with the consumption data of regional countries exposed to similar geopolitical risks. In addition, it is worthwhile to take a step back and start the analysis from the last year before the crises (2019) instead of examining the volatile monthly data.
Related news
Research: How different generations view social labels
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >MNB keeps base rate at 6.5% – growth outlook worsens
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >The pace of consumer price increases in the euro area accelerated in September
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >Related news
KSH: retail turnover in August exceeded the same period of the previous year by 2.4 percent and the previous month by 0.8 percent
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >NGM: purchasing power is increasing, retail trade is expanding – family tax cuts and food vouchers for pensioners are further strengthening turnover
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >K&H Analyst Commentary: There is still room for expansion in Hungarian stores
🎧 Hallgasd a cikket: Lejátszás Szünet Folytatás Leállítás Nyelv: Auto…
Read more >