Hungarians can still avoid shops for many months

By: Trademagazin Date: 2023. 08. 24. 17:28

According to Péter Virovácz, senior analyst at ING Bank, although real wages are increasing again in Hungary, the population continues to spend cautiously due to the current inflationary environment. Analysts believe that the willingness to spend may change in the run-up to Christmas, and perhaps that demand for consumer durables may strengthen.

At the same time, inflation was high for a long time, which could not keep up with wage dynamics, so consumption fell. Although inflation decreased, consumer confidence did not improve significantly, partly due to weaker indicators of economic performance. According to Péter Virovácz, rising real wages alone will not encourage people to spend, as high inflation and high costs are still felt.

Analysts are confident that with the improvement of the economy and more favorable economic prospects, the willingness to consume may also gradually increase, which may primarily be shown in the increase in demand for consumer durables.