MBH Bank: Retail trade can be one of the mainstays of this year’s growth

By: Trademagazin Date: 2024. 06. 25. 15:22

Retail trade is one of the areas through which the population perceives the prevailing trends of the economy the most, so the state of the sector is crucial from the point of view of consumers, the economy and the state. During the inflation-laden period of the years behind us, consumer confidence was significantly shaken, which also negatively affected turnover, but this trend has now reversed, and according to the signs, one of the most important pillars of this year’s economic growth will be household consumption – revealed the MBH Bank Sector At the press conference on retail trends of his outstanding event series. At professional events that examine various sectors of the Hungarian economy, the bank not only analyzes the economic environment of the sector under investigation, but also provides insight into its business experiences related to the field.

A stable increase in residential consumption is expected

Domestic retail is going through difficult years, as the turnover data show a continuous, long-lasting slump since the peak in 2022. The decline observed in several countries of the Central and Eastern European region – also in connection with the inflationary crisis – has deepened in our country, which was reflected, among other things, in the sharp drop in the consumer confidence index. The population reacted to the rise in prices by curbing the structure and level of consumption, which factor still has a perceptible effect on the internal processes of the sector.

“The rate of price increase began to slow down significantly in the second half of last year, but at the same time, net real wages began to rise dynamically from the end of the summer of 2023, so it could be expected that the caution of buyers would disappear and consumption would return to the rising trend in 2024 at the latest to track. This process has been clearly noticeable since October, despite minor fluctuations, so we can safely say that one of the main pillars of this year’s economic growth will be the re-strengthening of household consumption.”

– stated Zoltán Árokszállási, director of the MBH Analytical Center.