Péter Virovácz: It is too early to talk about recovery

By: Trademagazin Date: 2024. 01. 08. 12:46

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The Ministry of National Economy welcomed the new retail sales data, but experts warn of caution. Although the month-on-month increase appears to be a positive sign, the level of the year-on-year decline remains a cause for concern.

According to data published by the Central Statistical Office on Monday, in November 2023, retail trade increased by 0.8 percent on a monthly basis compared to the previous month. At the same time, the annual decline is still 5.4 percent, which poses a serious challenge to the sector.

ING Bank’s chief analyst, Péter Virovácz, told mfor.hu that although the volume of retail trade increased for the first time in a long time, the annual comparison still shows a negative result, with a 5.4 percent drop in the performance of the sector.

Analyzing the detailed data reveals that the turnover of grocery stores stagnated in November, but a slight improvement can be seen on an annual basis due to the low 2022 base. According to Virovácz, although there are encouraging signs due to the drop in food prices, it is still too early to talk about a drastic increase in food consumption.