Last year, Hungarians spent more than HUF 400 billion on shopping abroad

By: Trademagazin Date: 2024. 03. 06. 12:11

Hungarians spent nearly 400 billion forints abroad on short foreign trips, primarily for shopping, according to recent data from the Hungarian Central Statistical Office (KSH). Despite a significant decline in domestic consumption, likely influenced by the brutal inflation, many Hungarians still possess sufficient reserves from their income to spend abroad. The most popular destinations for these trips remain neighboring countries, namely Slovakia, Romania, Austria, and Serbia.

The number of trips increased in almost every category, except for visits to relatives. Most money was spent on purchasing goods and services, with spending more than doubling compared to the same period in the previous year, reaching 78 billion forints. There was also a substantial increase in spending on entertainment, leisure, and health preservation, rising from 99 to 156 billion forints.

Experts, including Virovácz Péter, Chief Analyst at ING, attribute this phenomenon to the high domestic prices, leading Hungarians to seek better deals abroad. However, concerns arise about the potential negative impact on the Hungarian economy when citizens choose to spend a significant portion of their income outside the country. Trippon Mariann, Chief Analyst at CIB Bank, adds that the data might be misleading, and while the recovery of consumption is positive, Hungarians remain cautious, opting for shorter trips.

Analysts suggest that the devil is in the details, and it would be crucial to see how participants in foreign travel are distributed across income groups. Inflation affects both domestic and foreign spending, and although the outlook is more optimistic regarding the post-COVID recovery, it still falls short of the 2019 levels.

Travel data indicates that most Hungarians visited Austria, Slovakia, and Romania, where the primary drivers of growth were multi-day, leisure-oriented, and shopping-related trips. The challenge posed by the growth in foreign spending prompts a need for changes in the Hungarian economy. Improving the competitiveness of Hungarian prices and enhancing domestic shopping opportunities are essential to dissuade citizens from feeling compelled to shop abroad.